The company said it raised an additional $10 million in local currency working capital from Nigerian commercial banks.
In a statement made available to Business Insider SSA on Wednesday, August 14th, Kobo360 said it is also planning to significantly broaden its reach in Africa, entering 10 new countries by the end of 2020 beyond its footprint in Nigeria, Togo, Ghana, and Kenya.
Kobo360 to scale across Africa and support AfTCFAs dreams
With the funding, the team said it will “continue to scale the organisation, develop the technology offering, and accelerate supply growth.”
The company is also “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.”
Obi Ozor, Co-founder and CEO 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”.
Omobola Johnson, Senior Partner of TLcom Capital, said, “We see this Series A round as a means to support an ambitious, laser-focused company that is 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.”
Wale Ayeni, who heads venture investing in Africa for the International Finance Corporation, added, “IFC’s continuous investment into Kobo360 stems from the company’s successful track record. Kobo360 is empowering and enhancing the capacity of the vast underserved network of “micro” fleets in Africa to serve the huge unmet long-haul freight needs of large enterprises and SMEs, delivering value to both sides.”
Launched in 2017 by Nigerian entrepreneurs Obi Ozor and Ife Oyedele II, Kobo360 said it has moved over 500Mkg of goods, aggregated a fleet of over 10,000 drivers and trucks, and services SMEs to middle and large enterprises.