Nigerian logistics Start-up Kobo360 raises $1.2M in Pre-seed funding.

 

Kobo 360 is an Uber like app that connects Nigerian truckers to companies with freight needs. Kobo360 has served 324 businesses, aggregated a fleet of 5480 drivers, and moved 37.6M kilograms of cargo since 2017, per company stats. Top clients include Honeywell, Olam, Unilever, and DHL.

it was accepted into this years YC’s class where it recieved $1.2M in pre-seed funding for 7% equity, this funding was led by Western Technology Investment and supported by Verod Capital Management.

Earlier this year when Obi Ozor a co-founder of the start up was interviewed for Y Combinator’s 2018 cohort. He was asked “What’s holding you back from becoming a unicorn?” he replied “Working Capital’.

Ozor previously headed Uber Nigeria, before teaming up with Ife Oyodeli to co-found Kobo360. They initially targeted 3PL for Nigeria’s e-commerce boom namely; Jumia (now Africa’s first unicorn) and Konga (recently purchased in a distressed acquisition). Ozor said Kobo360 created the platform because of limited vehicle finance options for truckers in Nigeria.

Within just 4 months since their launch, Kobo360 reportedly processed orders worth an estimated $2.8 million. The company reportedly coordinates 5,000 trips a month, has served 324 businesses and moved north of 37 million kilograms of cargo since 2017. It currently has 5,480 active drivers using the platform.

Kobo360 is looking to launch its app in Hausa and Pidgin by August this year. It also plans to add 20,000 trucks on its platform and expand to Togo, Cote d’Ivoire, Ghana, and Senegal.

Kobo360 is also launching the Kobo Wealth Investment Network, or KoboWIN a crowd-invest, vehicle financing program. Through it, Kobo drivers can finance new trucks through citizen investors and pay them back directly (with interest) over a 60-month period.