Kobo360, a Nigeria-based digital logistics platform that facilitates end-to-end haulage operations, has secured $30 million in a funding round. The company plans to utilize the funds in building a Global Logistics Operating System [G-LOS] which will facilitate trade across Africa and its emerging markets.
The Series A funding round was led by Goldman Sachs, with participation from Asia Africa Investment and Consulting Pte, existing investors like TLcom Capital, Y Combinator, the International Finance Corporation and Nigerian commercial banks.
Through the fund, Kobo360 will add extra 25,000 drivers to their platform; in a bid to meet the intra-African trade needs of the Africa Free Trade Continental Agreement. The company will also leverage this to expand across 10 new countries by the end of 2020. This expansion will go beyond their presence in Nigeria, Togo, Ghana, and Kenya.
Kobo was launched in 2017 by Obi Ozor and Ife Oyedele II, in a bid to facilitate end-to-end long-haul freight operations. The company aims to disrupt Africa’s $150 billion logistics industry through connecting and supporting cargo owners, truck owners, drivers, and cargo recipients.
Since its inception, the company has facilitated the delivery of over 500Mkg of goods and accumulated a fleet of up to 10,000 drivers and trucks. They offer services to SMEs and more than 80 large enterprises like the Dangote Group, DHL, Unilever, Olam, African Industries, Flour Mills of Nigeria, and Lafarge.
According to Obi Ozor, Co-founder and CEO of Kobo360, the funding round allows them to invest in resources that will strengthen their workforce and ground their place in the logistics sector. He said they will focus on building a partnership relationship with their drivers, and also ensure that they are digitally included. This will enable them to convey goods seamlessly whilst earning more money.
Kobo360 is building a suite of products tailor-made for its drivers. In this regard, the company also launched KoPAY, a platform that offers about $5,000 monthly working capital; KoboSAFE, an insurance product; and KoboCARE, a discounted petrol, comprehensive HMO packages and an incentive-based education program for the drivers’ families.
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