In 2019, Sehinde Afolayan faced a logistical nightmare that would ultimately transform Nigeria’s supply chain landscape. As the leader of an agricultural commodities trading company, Afolayan encountered severe challenges with deteriorating logistics and warehousing services. The illuminating moment came when a down payment had been made for 60 tonnes of grains, only to discover that most of the stock was ruined due to improper storage. This incident highlighted a significant issue – Nigeria’s logistics infrastructure was woefully inadequate for preserving agricultural produce.
The experience deeply troubled Afolayan, prompting him to contemplate how such post-harvest losses could be prevented in an age where technology offers numerous solutions. Motivated to find a better way, Afolayan began researching the inefficiencies in Nigeria’s logistics sector. This exploration led to the birth of Haul247, a digital platform designed to streamline and modernise logistics services in the country. To bring his vision to life, Afolayan collaborated with friends Akindele Phillips and Tobi Obasa, spending over a year developing a business model that would address the exact challenges he had faced.
The concept was simple but powerful: a digital platform where businesses could book logistics and warehousing services from third-party providers. For example, a user could log on to the platform to find 20,000m² of warehouse space for grain storage near Lagos, complete with transport services from the farm to the warehouse. As the team was laying the groundwork for Haul247, the world was hit by the COVID-19 pandemic in early 2020. Faced with uncertainty, they had a crucial decision to make: delay the launch or push forward at a time when efficient logistics services would be more critical than ever. Choosing the latter, they approached Honeywell Flour Mills with their concept. Despite the platform not being fully ready, the team manually processed the first request, successfully matching the client’s needs with available vendors. This marked the official launch of Haul247 in March 2020, right as the pandemic was taking hold globally.
The early success with Honeywell Flour Mills set the stage for Haul247’s growth. The team, leveraging their networks and experience, began to attract other significant clients, including Knauf, Unilever, and Cormart. These early partnerships were instrumental in establishing Haul247 as a credible player in the logistics industry. Unilever, in particular, provided substantial business that helped Haul247 expand its network during a challenging period.
Haul247’s strategy focused on partnering with large multinational corporations first. This approach offered several advantages: it eased regional expansion and ensured timely payments, which is critical for maintaining healthy cash flow in a logistics business. By securing favourable payment terms, Haul247 has been able to distinguish itself from competitors, ensuring that truck drivers and warehouse owners are paid quickly, thus maintaining strong relationships with their service providers. In addition to competitive payment terms, Haul247 offers a unique value proposition by bundling warehousing and haulage services. This allows manufacturers to store goods across the country until they are ready to be transported, offering flexibility and efficiency that is crucial in today’s fast-paced market.
With a $3 million funding round led by Alithea Capital, Haul247 is now poised to expand its services to small and medium-sized enterprises (SMEs), including import/export companies and agribusinesses. The platform’s ability to integrate with clients’ existing systems makes it easier than ever to book warehouse space or transportation, and its mobile app provides real-time tracking and logistics management tools. Today, Haul247 handles over 600 trip requests per month and offers 151,000m² of available warehouse space. The platform lists more than 1,000 trucks and has transported a staggering 29.2 million kilograms of goods.
