Investors in Kobo360, the once-promising freight logistics startup, have sold their shares to co-founder and former CEO Dr. Obi Ozor, marking a major reset for the company. The deal includes Ozor assuming Kobo360’s ₦10 billion ($6.2 million) debt, as he attempts to revive the startup with a small team after years of financial trouble, stalled operations, and leadership exits.
Key Highlights of the Deal
✅ Ozor regains control of Kobo360 after stepping down in 2023 to serve as Enugu State’s transport commissioner.
✅ Investors—including Juven (a Goldman Sachs spinoff) and TLcom Capital—exit the company, likely writing off their investments.
✅ International Finance Corporation (IFC) retains its equity, despite macroeconomic struggles.
✅ Kobo360’s downfall stemmed from liquidity issues, as it struggled to pay truck drivers upfront while waiting 30–90 days for clients’ payments.
✅ The company once raised $79 million from investors, including $20M (Series A in 2019) and $48M (Series B in 2021).
✅ Only a few African logistics startups raised funding in 2024, reflecting declining VC interest in the capital-intensive sector.
The Rise & Fall of Kobo360: What Went Wrong?
Founded in 2017, Kobo360 set out to digitize Africa’s freight logistics by matching truck owners with businesses needing to move goods.
The company expanded rapidly, onboarding over 50,000 trucks, serving clients like Dangote, Unilever, and DHL, and scaling operations across multiple African markets.
However, Kobo360’s business model relied on paying truckers upfront while waiting months for manufacturers and distributors to settle invoices. This created a crippling working capital gap, which worsened when a bank partner cut off Kobo360’s credit line due to unserviced debt.
Without cash flow, the company failed to pay truck drivers on time, causing trip volumes to plummet and pushing the business into a downward spiral.
⏳ In October 2024, CEO Ciku Mugambi stepped down, and several executives exited, leaving the company with only a handful of staff.
The Bigger Picture: Why Freight Tech in Africa Struggles to Scale
The logistics sector in Africa is notoriously difficult due to:
- Thin profit margins
- High operational costs
- Dependence on bank credit lines
- Slow payments from corporate clients
Investor sentiment toward logistics startups has cooled as VCs prioritize profitability over aggressive expansion.
In 2024, only three logistics startups (Renda, Fez Delivery, and Cargo Plus) raised venture capital, securing a combined $2.1 million—a fraction of the funding seen in previous years.
Lori Systems has not disclosed new funding, while Sendy pivoted from logistics before eventually shutting down.
Unlike fintech or e-commerce, logistics requires constant injections of capital, making it harder to scale profitably.
What’s Next for Kobo360 Under Ozor?
Ozor is reportedly seeking traditional financing and haulage partnerships to restart operations—but has not yet publicly announced a turnaround plan.
The CEO position remains vacant, and it’s unclear whether Kobo360 can rebuild without venture capital.
Can Ozor pull off a second act for Kobo360, or is this the final chapter for one of Africa’s most-hyped freight tech startups?