This archive report was first published on 2 September 2019.
On September 2, 2019, Nigerian e-logistics start-up Kobo360 marked its first physical expansion into East Africa by opening offices in Kenya and Uganda.
Kenya, through the port of Mombasa, serves as a gateway to other East African countries, including Uganda, Rwanda, Burundi, the Democratic Republic of Congo, and South Sudan. Kobo360 has been operating in Kenya for five months, with access to over 3,000 trucks and truck owners.
The company sees an opportunity for growth in Kenya due to its high technology adoption rate. Kobo360 aims to tap into the 13 million tonnes of cargo handled at the port of Mombasa, which also has a direct connection to over 80 ports worldwide.
Founded in 2017 in Lagos, Nigeria, Kobo360 has operations in Togo and Ghana. The logistics firm connects end-to-end haulage operations to provide efficient logistics services to cargo owners, truck owners, and drivers.
Kobo360 leverages technology, combining the Internet of Things (IoT), mobile technology, and data analytics to offer convenient logistics solutions. Services are accessible via web and app, ensuring guaranteed delivery, with clients able to track their shipments.
The company has a strong financial backing, having recently raised $30 million from Goldman Sachs in a series A fundraising round. Local investors include Chandaria Capital, Y Combinator, TLcom Capital, WTI, and the International Finance Corporation (IFC).
Speaking at the launch, Kobo Africa CEO Kagure Wamunyu cited the AfCTA agreement as a key driver in logistics expansion. The logistics value chain in Africa is currently valued at $150 billion.
Kenyan logistics partners include Bidco Africa, Union Logistics Limited, and Intraspeed ARCPRO Kenya LTD. Kobo360 claims its services will lead to a 20 percent reduction in logistics costs by matching user requests with quality trucks within six hours.
