Kobo360’s Uncertain Future as Investors Exit

Investors in Kobo360, once hailed as Africa’s “Uber for trucks,” have offloaded their shares to former CEO Obi Ozor. The freight logistics startup, which raised around $79 million, has faced mounting financial struggles, leadership turnover, and operational setbacks. As part of the deal, Ozor will also inherit Kobo360’s ₦10 billion debt, raising questions about the company’s future.

A Leader Returns Amid Financial Turmoil

Ozor, who left the company in 2022 to become Enugu’s transport commissioner, is stepping back in, now leading a small team in a final attempt to revive the business. The startup’s struggles reflect a broader crisis in African freight tech, where companies face tight profit margins, high capital demands, and unreliable cash flow.

Despite securing high-profile backers like Goldman Sachs’ Juven, the International Finance Corporation (IFC), and TLcom Capital, Kobo360’s operations took a hit when a key financial partner pulled its credit line over unpaid debt. A former employee, speaking anonymously, confirmed that this cut off the company’s main revenue source, pushing it into decline.

“The challenging macroeconomic environment has created headwinds for startups across emerging markets, including in the logistics sector,” said the IFC in a statement.

A Startup’s Rise and Fall

Launched in 2017, Kobo360 aimed to digitise Africa’s freight industry by connecting truck owners with businesses. The company’s model initially showed promise, attracting $20 million in Series A funding in 2019, followed by a $48 million Series B in 2021. At its peak, it operated in seven African markets, managing over 50,000 trucks and signing deals with Unilever, Dangote, and DHL.

However, the company’s reliance on upfront payments to truck drivers while waiting up to 90 days for corporate clients to settle invoices created a major cash flow gap. When a banking partner withdrew support, Kobo360 struggled to pay drivers, leading to reduced trip volumes and revenue loss. Investor confidence waned, and by late 2024, CEO Ciku Mugambi resigned, followed by several senior executives.

Can Kobo360 Make a Comeback?

Kobo360’s struggles mirror a broader decline in venture capital interest in African logistics. In 2024, only three logistics startups—Renda, Fez Delivery, and Cargo Plus—secured funding, raising a combined $2.1 million, a fraction of previous years’ investments. Meanwhile, rivals like Lori Systems have not announced new funding rounds, and Sendy has pivoted away from logistics entirely.

The big question remains: Can Ozor turn things around? Sources say he is exploring traditional financing and haulage partnerships, but Kobo360 has yet to announce a concrete revival strategy. For now, its future hangs in the balance.