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Jake Bright is a writer and author in New York City. He is co-author of The Next Africa.
When Nigerian logistics startup Kobo360 interviewed for Y-Combinator’s 2018 cohort a question stood out to founder Obi Ozor. “‘What’s holding you back from becoming a Unicorn?’ they asked. My answer was simple: ‘working capital,’” said Ozor.
Kobo360 - YC - Class - Capital - Form
Kobo360 was accepted into YC’s 2018 class and gained some working capital in the form of $1.2M in pre-seed funding round led by Western Technology Investment announced this week. Lagos based Verod Capital Management also joined to support Kobo360.
The startup — with an Uber -like app that connects Nigerian truckers to companies with freight needs — will use the funds to pay drivers online immediately after successful hauls.
Kobo360 - Kobo - Wealth - Investment - Network
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.
Ozor said Kobo360 created the platform because of limited vehicle finance options for truckers in Nigeria. “We hope KoboWIN…will inject 20,000…[additional] trucks on the Kobo platform,” he told TechCrunch.
Kobo360 - Utility - Drivers - Demand - Technology
On Kobo360’s utility, “We give drivers the demand and technology to power their businesses,” said Ozor. “An average trucker will make $3,500 a month with our app. That’s middle class territory in Nigeria.”
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.
Ozor - Uber - Nigeria - Ife - Oyodeli
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).
“We started doing last mile delivery…but the volume just wasn’t there for us, so we decided to pivot…to an...
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