Chisco Express Founder to Acquire His Father's $25million Worth of Transportation Property
- Chisco Express is aiming to acquire Chisco Transport from travels and logistics company, Chisco Group, which is owned by Chidi Anyaegbu
- The founder of Chisco Express, Obinna Anyaegbu said he want to leverage the infrastructure owned by Chisco Transport to compete against DHL, GIG, others
- Anyaegbu plans to takeover the $25 million infrastructure to fund its rival against corporate organisations, small and medium logistics firms
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Obinna Anyaegbu, the founder of logistics startup, Chisco Express, has made a bid to acquire Chisco Transport, a firm under his father's conglomerate, Chisco Group.
The Accountant is reportedly next in line to takeover from his father, Chidi Anyaegbu, being the first son, however, Obinna is not waiting for Anyaegbu to retire as the techie aims to buyout one of the subsidiary.
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In an interview, he stated that funds are already being raised to back his acquisition of the transportation business:
“My dad has done his bit for 40 years and he did it incredibly well. However, we all know he will not be here forever. And times are changing fast. That is why I am raising capital to buy the company so I can position it for the next growth phase."
What you should know
The acquisition of Chisco Transport will see Obinna takeover a West African logistics infrastructure worth $25 million - but will it be enough to compete against rivals in a multiple revenue exit market.
The Nigerian commerce and logistics market is saturated by corporate, medium and small players utilising four and two wheels to carry out their last-mile operations.
The proposed merger of Chisco Express and Chisco Transport will pit the Anyaegbu family business against the likes of DHL, FedEx, and GIG who are servicing nationwide demand to earn the largest chunk of the market share.
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Also, there are intra-state last-mile services such as Jumia Express, Kwik Delivery, Gokada, Kobo360, MaxNG and other two-wheel operators who have cut the revenue flow from the low-end of the market.
Competitor taking actions to remain relevant
In related news, Legit.ng had previously reported that Kwik Delivery raised $1.7 million amid rising competition within the logistics business in Nigeria.
The funds were raised to make the company competitive following an inroad into the market by bike-hailing operators who are innovating around government policy.
Kwik Delivery also plans to use the capital to fund its expansion into new markets as it seek to increase its revenue sources going forward.