Nigeria Startups more than ever have been securing major investments, and while it cuts across all platforms, tech-enabled logistics namely Kobo360 has become the latest to secure its own Multi-million dollars seed funding
The logistic company had reportedly secured major investments, two of which include international and local seed-funding. According to Business Insider, Kobo360 was able to raise $20 million in a Series A equity round led by Goldman Sachs during its participation from Asia Africa Investment and Consulting Pte Ltd, while the additional $10 million came from a local working capital from Nigerian commercial banks.
Having secured a $30 million seed funding, Kobo360 informed that it is planning an expansion to more countries beyond Nigeria, Togo, Ghana, and Kenya where it initially debuted towards the end of 2020.
With respect to expansion, the logistic company while speaking with Business Insider SSA on Wednesday told that it won’t stop at anything until it achieves its aim of broadening its reach to 10 more countries in Africa before the end of 2020. At that, the company who sees the funding as a stepping stone told that “it will continue to scale the organization, develop the technology offering, and accelerate supply growth”
In order to foster its expansion plan, Kobo360 also intends to add about 25,000 drivers to the platform in the coming months which also will serve as its own quota to the propagation of the recent Africa Free Trade Continental Agreement, expected to encourage intra-African trade.
Speaking on the new funding, 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.”
In addition, Obi emphasized on the need to partner with drivers as well as train them on the use of mobile-enabled technology. This will also be of help to the drivers who will now be able to convey goods seamlessly while earning more money for themselves. In his words, he said, “We are already seeing drivers running trips on the kobo360 platform increase their monthly earnings by 40% as we work together to mobilize logistics across Africa.”
Also, while this is not the first time the company is securing an investment, last March, the company had also raised $1.2 million in pre-seed funding round by California-based Western Technology Investment and Nigeria’s Verod Capital Management.
While the numbers are quite high, it is easy for the company that launched in 2017 to secure such investment already, considering that it has moved over 500Mkg of goods since the start, and that’s enough record to peach to the investors in the shortest period of arrival. Not just that, Kobo36o has reportedly aggregated a fleet of over 10,000 drivers while it is currently planning to increase the numbers by an additional 25,000 before the end of 2020, and if you ask me, I would rather invest in a fast-growing startup like this than a static amateur company.