RENEW and the Impact Angel Network invested a follow-on Investment on Deliver Addis (Universal Courier Services PLC ) in response to increased demand caused by the COVID-19 pandemic according to RENEW.
Deliver Addis is a logistics and delivery company that has been operating since 2015. Deliver Addis which started as an online food delivery, now also added online marketplace where users can shop for groceries as demand spiked because of COVID Pandemic. The company now provides food from over 100 restaurants, groceries, flowers, and other consumer products.
RENEW is an impact investment and consulting firm that manages and serves the Impact Angel Network (IAN) which is an active private equity investors in Ethiopia.
RENEW invests between $200K to $3M in SME's with social impact and so far made 14 investments in 12 companies while exiting two investments in Ethiopia who realized a gross IRRs of 26.7% and 17.6%.
This investment goes to Roadrunner Technology Solutions LLC ( Roadrunner), a partner of Deliver Addis - a similar arrangement as the previous rounds.
The amount of this round is not disclosed. Both previous rounds were undisclosed as well but Ibex Frontier report putted the first round of investment as minimum as $300K. In Addition, Shega confirmed from close sources that Second round investment was at least higher than $300K.
Renew said after there Initial investment, Deliver Addis’s daily deliveries have grown 630%. This follow- on investment is expected to increase Deliver Addis's capacity, reduce prices and increase efficiency to expand market share and offer new products and services to the market.
Ethiopian Ecommerce scene is getting a momentum during this COVID-19 pandemic. Read Shega's overview of the sector here.
“As both a frequent user of Deliver Addis and owner of Roadrunner, I couldn’t be more excited about this investment,” said Matthew Davis, RENEW’s CEO.
“Not only is the need for such services of national importance to control the spread of COVID-19, but it is also keeping hundreds of people employed through Deliver Addis and the small businesses they support. Feleg is a visionary and a skilled technician. We’re excited to back him and drive Deliver Addis into new markets.”
Feleg Tesgaye, founder of Deliver Addis said “While it hasn’t been easy to launch and grow an e-commerce platform in Ethiopia, the country is changing every day”.
He added, “We’re seeing consumers adopt technology not only as a luxury, but, in these challenging times, it’s becoming a necessity. We’re pleased to play our role in helping prevent the spread of COVID-19 and to help so many restaurants, local vendors and supermarkets keep their lights on by providing them with an online market. We appreciate all of the support we have received from the community and our stakeholders, and we look forward to continuing to serve them.”