Investors in Kobo360, a freight logistics startup that raised about $79 million, have sold their shares to co-founder and former CEO Obi Ozor. The deal, which will see Ozor take on existing debt of about ₦10 billion, caps a dramatic fall for the eight-year-old company, which was once heralded as Africa’s “Uber of trucks” but has struggled with leadership churn, stalled haulage operations, and financial troubles.
Ozor, who stepped down as CEO in 2022 to become Enugu’s transport commissioner, is back at the helm, leading a team of less than ten people in a last-ditch effort to revive Kobo360 through traditional financing and haulage deals.
The sale is a significant write-off for investors, including Juven, the African investment arm of Goldman Sachs, IFC, and TLcom Capital, who backed Kobo360 as a transformative force in African logistics. The company’s struggles highlight the brutal economics of freight tech in Africa, where businesses must balance thin margins, heavy capital demands, and unreliable working capital flows.
“The challenging macroeconomic environment has created headwinds for startups across emerging markets, including in the logistics sector,” the International Finance Corporation (IFC), which backed the company through multiple equity investments, said in a statement to TechCabal. “IFC remains committed to supporting entrepreneurs driving innovation and development across the continent.”
Kobo360 declined to comment on this article
TLCom declined to comment on any part of this story.
A former Kobo360 employee who asked not to be named as they were unauthorised to speak on the matter claimed Kobo360’s growth stalled after a bank partner cut off its credit line due to unserviced debt. The startup raised around $10 million in debt financing from unspecified lenders.
Kobo360 launched in 2017 with a bold vision: digitizing freight logistics by matching truck owners with businesses needing to move goods. The model promised to cut inefficiencies, reduce empty return trips, and improve pricing transparency, factors that have long made logistics one of Africa’s most expensive sectors.
For a while, the bet seemed to pay off. In 2019, Kobo360 secured $20 million in Series A funding, followed by a $48 million Series B in 2021. At its peak, it aggregated over 50,000 trucks, expanded into seven African markets, and signed up corporate clients like Unilever, Dangote, and DHL.
But the company’s Achilles’ heel was always working capital. Kobo360 operated on a model that paid truck drivers upfront but had to wait 30 to 90 days for manufacturers and distributors to settle invoices. This cash flow gap forced it to rely on bank credit lines, a lifeline that vanished when a financial partner cut off funding over unserviced debt.
“Our partnership with these banks was three-way, so tensions on the bank’s side led to us losing access to our customers’ domiciled accounts. These were major clients, and losing their business significantly reduced Kobo360’s trip volume, revenue, and overall growth,” said a former employee who asked not to be named discussing a sensitive matter.
Without working capital, Kobo360 struggled to pay truck drivers on time, leading to declining trip volumes and a downward spiral in revenue. Investors who once backed its growth began to lose faith. In October 2024, CEO Ciku Mugambi—who had replaced Ozor in 2022—stepped down. Several senior executives followed, leaving the company with skeletal staff.
Kobo360’s situation isn’t an isolated case. The logistics sector has seen a drop in investor interest as venture capital firms prioritize profitability over-aggressive expansion.
In 2024, only three African logistics startups (Renda, Fez Delivery, and Cargo Plus) raised venture capital, securing a combined $2.1 million (a fraction of the amounts raised in previous years). Lori Systems, another high-profile freight tech startup, has not disclosed new funding, while Sendy pivoted from logistics before eventually shutting down.
The fundamental challenge? Unlike e-commerce or fintech, which benefit from low marginal costs and strong network effects, logistics is capital-intensive and dependent on credit cycles. Many investors now doubt whether digital freight platforms can scale profitably without constant injections of external funding.
The big question is whether Ozor can revive the company without venture capital. According to sources close to Kobo360, he is seeking traditional financing and haulage partnerships to restart operations, but details remain scant. The company has not publicly announced a turnaround plan, and its CEO position remains vacant.
