Kobo360, a Nigerian logistics startup, has won $30 million of funding, including $20m led by Goldman Sachs and $10m from compatriot commercial banks.
The cash will allow the Lagos-based firm, which connects drivers, truck owners and companies requiring logistics jobs, to expand into ten new territories. It already operates in Nigeria, Ghana, Kenya and Togo, the latter three following two rounds in 2018 that totaled $7.2m.
Today’s series A funding is led by New York bank Goldman Sachs, with additional money from Asia Africa Investment and Consulting, TLcom, Y Combinator and the International Finance Corporation. Kobo360 claims it will add 25,000 drivers to the platform. It already aims to be more inclusive than other Nigerian startups, offering services in pidgin and Hausa in addition to English.
The company’s expansion across the region takes advantage of the African Continental Free Trade Agreement, a NAFTA-like deal signed into force last year in Kigali, Rwanda. It aims to streamline trade between 54 states, adding value to an African road freight industry worth almost $6bn according to analyst MarketLine.
Obi Ozor, CEO and co-founder of Kobo360, says the firm’s latest round will help it educate drivers on mobile technology, and build out a blockchain-enabled operating system to transition into the supply-chain industry.
“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,” said Ozor.