Kobo360, the digital technology platform aiming to disrupt African third-party logistics, has secured a US$20-million funding after completion of a Series A equity round.
An additional $10M in local currency working capital financing has been secured from Nigerian commercial banks, Kobo360 stated.
According to a statement released by the company, the round was led by Goldman Sachs, with participation from Asia Africa Investment and Consulting Pte. and existing investors including TLcom Capital, Y Combinator, the International Finance Corporation.
Kobo360 was launched in 2017 by Nigerian entrepreneurs Obi Ozor and Ife Oyedele II, to develop an efficient supply chain for end-to-end long-haul freight operations, connecting and supporting cargo owners, truck owners & drivers, and cargo recipients.
The company says the funds will be used to continue to scale the business, develop the technology offering and accelerate supply growth – planning to add 25,000 drivers to the platform in the coming months to power the recent Africa Free Trade Continental Agreement, expected to catalyse intra-African trade.
Ozor, Co-founder and chief executive officer of Kobo360 said, "Our Series A allows us to invest in growing our talented team that is working hard on the ground to systematically address the inefficiencies within the African logistics sector, and strengthen our already extensive network of clients and truck owners across the continent. We are also focusing on developing the partnership with drivers, ensuring that they are trained to use mobile-enabled technology, so they can convey goods seamlessly and earn more money. We are already seeing drivers running trips on the Kobo360 platform increase their monthly earnings by 40%, as we work together to mobilise logistics across Africa."
Jules Frebault of Goldman Sachs said, "Kobo360's on-demand logistics offering has generated impressive traction and we are excited to support Obi, Ife and the team as they harness technology to tackle one of Africa's most pressing development challenges - increasing market transparency, improving reliability and unlocking efficiencies for all participants in the logistics ecosystem".
Senior Partner of TLcom Capital, Omobola Johnson said, "We see this Series A round as a means to support an ambitious, laser-focused company who are using technology to actively solve problems for enterprises across the continent, and we look forward to working with them as they continue to scale and transform the African logistics sector."
Kobo360 plans to enter entering ten new countries in Africa by the end of 2020 beyond its footprint in Nigeria, Togo, Ghana and Kenya.