Pigee Inc. Acquires 55% Stake in ShipAfrica: A Bigger Step Into Africa’s Logistics Future
Africa’s logistics market is growing quickly, but building the infrastructure needed to support cross-border commerce is no small task.
For Pigee Inc., the next step is not to build everything from scratch.
Pigee has agreed to acquire a controlling 55% stake in Nigerian logistics startup ShipAfrica, giving the US-based logistics-tech company an established foothold in Africa and access to local logistics infrastructure.
The acquisition will take place in three stages over the next 18 months and will be funded through a combination of cash and equity.
The deal value has not been disclosed.
According to Pigee CEO Leroy Lawrence, the terms of each tranche could change as Pigee raises additional capital.
From local logistics to global commerce
One of the biggest opportunities in African logistics is not simply moving packages from one city to another.
It is helping African businesses sell beyond their borders.
A fashion brand in Lagos may have customers in London.
An artist in Nigeria may receive an order from the United States.
A small business selling online may have demand from customers across several countries but lack the infrastructure to make international delivery simple.
This is where logistics technology becomes particularly important.
The future of cross-border commerce will require more than transportation. Businesses need access to shipping options, customs information, payments, tracking and the operational tools required to fulfil international orders.
That is the space Pigee has been building in.
The company’s platform is designed to help businesses manage different parts of the international shipping process, from getting shipping quotes and preparing shipment information to handling customs details, printing labels and tracking parcels.
With a stronger operational presence in Africa, Pigee has the opportunity to connect these capabilities more closely to the realities of the African market.
Why Africa, and why now?
Africa’s digital economy is creating more businesses that can sell to customers outside their immediate markets.
Social commerce, e-commerce and digital payments are making it easier for small businesses to find customers globally.
But there is still a major gap between finding an international customer and successfully delivering to them.
That gap is logistics.
Shipping costs, customs requirements, unreliable delivery networks, limited visibility and complicated returns can all make international commerce difficult for smaller businesses.
Solving those problems could unlock a much larger market for African merchants.
And it is not only African businesses that stand to benefit.
International businesses looking to sell into Africa also need reliable ways to move products into the continent and navigate local logistics requirements.
A stronger logistics network can work in both directions.
What the acquisition means for Pigee
The ShipAfrica deal represents more than an expansion of Pigee’s geographic footprint.
It is a move towards building the infrastructure needed to support African businesses participating in global commerce.
By combining Pigee’s logistics technology with an established local operation, the company can potentially shorten the distance between its technology and the businesses that need it most.
The decision to keep ShipAfrica’s existing name, management and team also creates an opportunity to preserve the local expertise that made the business valuable in the first place.
The acquisition will unfold over the next 18 months, giving both companies time to integrate their operations while continuing to serve customers.
The bigger picture
Global commerce is becoming increasingly connected, but logistics remains one of the biggest barriers to that connection.
A customer can discover a product on Instagram in seconds.
They can pay for it online in minutes.
But getting that product across a border, through customs and safely into the customer’s hands can still be complicated.
That is the problem companies like Pigee are trying to solve.
The ShipAfrica acquisition is another step in that direction, bringing technology, local logistics knowledge and international commerce closer together.
For African businesses, the opportunity is clear: your next customer does not necessarily have to be in your city, or even on your continent.
The infrastructure to reach them is what needs to keep evolving.
And Pigee intends to be part of that evolution.
About Pigee
Pigee is a logistics-tech platform helping businesses simplify cross-border commerce through shipping, customs, payments, tracking and other tools needed to sell and deliver internationally.
Want to take your business global? Explore Pigee and see how international shipping can work for your business.
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