Nigerian logistics startup Kobo360 accepted into YC, raises $1.2 million

TechCrunch | 6/28/2018 | Jonathan Shieber
erinmmarionerinmmarion (Posted by) Level 3
Click For Photo: https://techcrunch.com/wp-content/uploads/2017/10/truckdriving.jpg?w=600


Click For Photo: https://techcrunch.com/wp-content/uploads/2017/10/truckdriving.jpg

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...
(Excerpt) Read more at: TechCrunch
Wake Up To Breaking News!
"It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift
Sign In or Register to comment.

Welcome to Long Room!

Where The World Finds Its News!