Dr. Obi Ozor, co-founder of freight logistics startup Kobo360, is attempting a high-stakes revival after reclaiming control of the company through an equity transfer. His multi-year turnaround plan hinges on restructuring ₦10 billion owed to partner banks and securing new financing to restart operations by Q2 2025, according to two people close to the company.
But the path back is challenging. Kobo360’s future depends on winning long-term haulage contracts from major shippers, such as manufacturers and distributors, and convincing lenders that the business can generate predictable cash flow. These contracts are critical for securing contract-backed financing, where banks fund businesses based on guaranteed future revenue.
In a WhatsApp message to recently laid-off employees, some of who Kobo360 still owes months of unpaid salaries, Ozor claimed the company was close to sealing crucial deals. He assured them that operations, which have been on hold across multiple markets, would resume by Q2 2025, with plans to recall laid-off employees by 2026.
Before its financial troubles, Kobo360 was one of the most celebrated logistics-tech startups in Africa, raising over $79 million in equity and debt from investors including Juven, Goldman Sachs’ Africa investment arm, the International Finance Corporation (IFC), and TLcom Capital. It expanded into Kenya, Ghana, Benin, and Burkina Faso, aggregating over 50,000 trucks and serving major corporate clients such as Unilever, Dangote, and DHL.
But its rapid expansion masked deeper financial weaknesses. The company relied heavily on short-term bank loans to finance fleet operations rather than sustainable revenue. A breaking point came when a key banking partner suddenly cut its credit line, leaving Kobo360 unable to pay truck owners and suppliers.
As its financial position deteriorated, investors began pulling out. Some refused to participate in follow-on funding rounds, while others wrote down their investments entirely. Meanwhile, key executives resigned. By late 2024, Kobo360 had paused operations in several markets, laid off staff, and by December, had all but shut down.
Despite the company’s dramatic fall, Ozor insists Kobo360 can recover, two sources familiar with the matter told TechCabal. He has assembled a lean team to execute a recovery plan centered on cost-cutting, debt restructuring, and rebuilding the company’s core operations. But questions remain about the new business model it will adopt or how close it actually is to securing financing.
Ozor remains confident, writing in a WhatsApp memo seen by TechCabal that “Companies for over a thousand years have struggled, come to the brink of total failure, and some—through grace, luck, or grit—have pulled themselves out of the ashes to emerge even more resilient and successful.”
