Kobo360, a Nigerian trucking logistics startup has raised a $6 million equity investment led by the International Finance Corporation (IFC) with participation from others including Silicon Valley investors WTI, Y-Combinator, African institutional investors Cardinal Stone Partners, Chandaria Capital, and TLcom.
The company revealed that the investment will be used to upgrade its platform, as well as expand operations to Ghana, Togo, and Cote D’Ivoire.
After being accepted into the Y-Combinator class of 2018, the startup raised $1.2 million in a pre-seed funding round. Presently, Kobo360 has served 900 businesses, aggregated a fleet of 8,000 drivers and moved 155 million kilograms. The firm’s top clients include Honeywell, Olam, Unilever, Dangote and DHL.
The Founder of Kobo360, Obi Ozor, who commented on the development, said “we are excited to have our new investors to support us in redesigning, transportation and logistics in Africa, and across Emerging Markets, by building a Global Logistics Operating System (G-LOS) to power new frontiers in trade and commerce. Our motivation remains to aggressively reduce logistics frictions for large enterprises and SMEs, and connect new markets, and in the process unlock better wellbeing and opportunities across communities”
The CEO also pointed out the firm’s growth by revealing that the startup has scaled from just an app to a platform that offers supply chain management tools for enterprise customers.
According to Ozor, “large enterprises are asking us for very specific features related to movement, tracking and sales of their goods. We either integrate other services, like SAP, into Kobo or build those solutions into our platform directly”.
He added that “we want clients to be able to use our Kobo dashboard for everything; moving goods, tracking, sales and accounting and tackling their challenges”.
The CEO of International Finance Corporation, Philippe Le Houérou said the corporation is committed to supporting the digital economy and young entrepreneurs in Nigeria and across Africa.
Le Houérou said “IFC’s investment in Kobo demonstrates how disruptive technologies can enhance the development of key sectors and contribute to Nigeria’s economic diversification. This is an innovative startup that is making company operations more efficient and lowering transport costs”.