Kobo360 Raises $30m from Goldman Sachs, Others

• Kobo360 Raises $30m from Goldman Sachs, Others

Nigerian logistics startup, Kobo360, has raised a total of $20 million in Series A funding led by a global investment bank, Goldman Sachs, and another $10 million from Nigerian commercial banks.

In a statement released by Kobo360, an Uber-like app that connects truckers and delivery services, the money will be used to extend operations to 10 new countries in Africa and upgrade its platform.

The startup presently operates in Nigeria, Togo, Ghana, and Kenya.

Since launching in 2017, Kobo360 has attracted more than 10,000 drivers and trucks to its app. Some of the startup’s top clients include Olam, Unilever, Dangote, DHL, and Honeywell.

The company has since launched a capital finance program, KoPay, KoboSafe insurance product, and KoboCare to assist drivers.

Obi Azor, Kobo360, CEO, said the company would make final decisions regarding its 10 new countries by the first quarter of next year.

He also stated that as a cross-border logistics company, Kobo360 is looking to benefit from the recently signed Africa’s Continental Free Trade Area (AfCFTA) agreement by 54 African nations.

“We’re going to do some policy work through the IFC so we can help shape AFCTA. The key to the deal is really logistics, so if the logistics component doesn’t work out the deal isn’t going to work,” Azor said.

According to Digest Africa, Kobo360 has now raised the 5th largest investment by an African startup this year with the $20 million Series A funding.

Jules Frebault, who works at Goldman Sachs, said the company’s ability to scale quickly and use tech to improve logistic efficiency in Africa are the two reasons why the investment bank led the Series A funding.

“It’s also a business model that’s replicable across multiple geographies on the continent,” he stated.