Musanga, a logistics startup, has secured a partnership with MTN Zambia

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Musanga, a Zambia-based on-demand delivery startup, has secured a partnership with MTN Zambia. Under the terms, Musanga's users - including drivers and merchants - will access various financial offerings from MTN.

According to Njavwa Mutambo, the co-founder and CEO, the startup has shipped over 30,000 packages since March. This was handled by 450+ independent drivers.

The key incentive for drivers to sign up, according to Njavwa, has been the demand. "We have some big accounts such as Pepsi and recently, Dangote," wrote Njavwa in an email.

Currently, they are looking to increase the number of drivers to 1500 by close of 2018. Musanga is, thus, hoping to use the MTN partnership to lure more drivers to its platform.

"Through MTN our drivers can get loans of up to $400 dollars for things like fuel," wrote Njavwa.

The partnership will also allow Musanga to avoid the burden of dealing with cash. "FMCGs usually pay us with cheques, so nothing cool [for them] here. But the SMEs use cash and that's where the MTN partnership will play a huge role," said Njavwa.

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Founded in 2016 by Njavwa Mutambo and Emmanuel Kwenda, Musanga only launched their platform officially on October 12, 2018. The same day they announced the partnership with MTN Zambia.

Yet, Njavwa says that since then, they "are shipping about 2000 packages daily." He also noted that this number is "growing at 4% day on day."

Musanga primarily works with FMCG brands to help them distribute their products countrywide. These deliveries are done by independent truck drivers, like Uber, but for trucks.

Early this year, the startup received equity free funding from the GSMA Ecosystem Accelerator. They also got funding from a Boston based Ground Squirrel Ventures. Though Njavwa declined to disclose the amount, only pointing out that it was equity funding.

In total, they have closed at least $250,000 in disclosed funding. Though, they are currently raising a Series A. "Musanga is currently raising it's $2 million Series A and will expand next year," wrote Njavwa.

The expansion target is two markets that they are yet to make public.

Musanga operates a revenue share business model with the drivers. They take "about 9-20% of transaction fee, depending on value." These drivers sign up through acquisition agents that Musanga hires across the country. Additionally, others can also use the website to sign up.

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