Senegalese logistic tech startup Chargel has raised $2.5 million in a seed round led by Logos Ventures with participation from Ventures Platform, Foundation Botnar, DFS Labs and Seedstars. This round was said to also included a $500,000 debt and $750,000 it announced last year.

The startup came into existence when Senegalese brothers Moustapha and Alioune Ndoye sold their hospitality tech startup, Teranga, in 2018 and turned to the trucking industry. They quickly realized that fleet management was a major challenge that affected the profitability of truck owners.

Their market research revealed the extent of inefficiencies in the trucking business, especially for owner-operators. This insight led them to create Chargel, a logistics tech startup.

Moustapha explained that they recognized the fragmentation and inefficiencies in the logistics sector in Senegal and believed that technology could provide a solution. To better understand the industry's challenges and opportunities, they decided to work as drivers for a few months before launching their startup.

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Speaking about the funding, Moustapha disclosed: “We are actually the ones in the middle because clients contract us and we are responsible for the cargo. Our goal is to make sure that the cargo goes from point A to B on time. We are making sure that shippers focus on their business, and truck drivers focus on driving, and we take care of everything that happens in between.” He also added that the startup gives transporters access to other services such as insurance.

Moustapha says Chargel did over $1.2 million in GMV in 2022, adding that they are close to surpassing that figure so far this year.