This archive report was first published on 10 September 2019.
Kobo360 Africa CEO on Expansion Plans for Africa ¶
Published on September 10, 2019
Kobo360, a digital logistics platform, has expanded its operations to several African countries, including Nigeria, Togo, Ghana, Uganda, and Kenya. The company's CEO, Kagure Wamunyu, spoke to Financial Standard about its expansion plans and how it plans to make a mark in the African market.
According to Wamunyu, the company chose Nigeria as its country of origin because its two co-founders are from Nigeria. The company also saw an opportunity in the huge market with over 200 million people, as well as a relatively established logistics value chain.
Wamunyu attributed the company's success in Nigeria to the market's positive response to its solution. He also mentioned that the State has invested in improving the value chain, making it easier for the company to operate.
When asked about the regulatory environment, Wamunyu stated that the State has been supportive of the company's operations. He also mentioned that the company has invested in reliable service delivery and affordability to gain traction in the market.
Regarding the company's model, Wamunyu explained that Kobo360 connects people who want to move cargo to truck owners, without owning the trucks. The company operates on a standard fee charged on the cargo owner, and it does not handle cargo or clearing and forwarding.
Wamunyu also mentioned that the company has connected clients from various sectors, including fast-moving consumer goods, millers, and clearing and forwarding. He stated that the company's direct competitors are established and startup companies, but competition is a good thing as it keeps the company on its toes and makes it better through continuous innovation.
When asked about the company's plans to deal with cargo handling issues like theft, Wamunyu stated that the company ensures each cargo move is covered by goods-in-transit insurance and has a standby team to respond to emergencies.
Wamunyu also mentioned that the company has been successful in the continent, clinching several awards for better service delivery, including the latest disruptor company of the year in Africa by the Africa CEO Forum. He stated that the company secured start-up capital through a series A funding worth Sh3 billion ($30 million) led by Goldman Sachs, International Finance Corporation, TLCom, among other investors.
Regarding the company's market share, Wamunyu stated that the company wants to be able to fill any sector where demand arises.
