Nigerian logistics startup, Kobo360 has just clinched a massive $6 million equity investment from the International Finance Corporation (IFC), a part of the World Bank Group. Other investors which participated in the funding round include Silicon Valley investors WTI, YCombinator, African institutional investors Cardinal Stone Partners, Chandaria Capital, and TLcom.
— TechCrunch (@TechCrunch) December 7, 2018
Speaking on the investment, IFC president, Philippe Le Houérou says Kobo360 is an important innovator in the Nigerian environment.
“This is an innovative startup that is making company operations more efficient and lowering transport costs”, he says.
According to the IFC, its investment in the two year old startup is a signal to its belief in the role of disruptive technologies for the economic development of Nigeria.
Meanwhile, Kobo360 CEO, Obi Ozor says he is excited by the new investment deal and the sort of investors now supporting it. He restated his startup’s commitment to “aggressively reduce logistics frictions for large enterprises and SMEs” and unlock new frontiers and opportunities across emerging markets.
According to some reports, the startup plans further expansion to other African countries like Ghana, Togo, and Cote D’Ivoire.
IFC has announced an equity investment of $6m in Kobo360 Inc, a #TECNOLOGY-enabled #ELOGISTICS platform that connects the supply of trucks with the demand for transportation services by cargo owners in Nigeria https://t.co/Sr4kuQb1na #DIGITAL
— Matthew Rugamba (@MatayoR) December 7, 2018
Although the new funding round is very impressive, it doesn’t come as a surprise. Last month, Digest Africa reported that potential funding talks were underway between the IFC and Kobo360.
Nevertheless, the new funding round marks another important stride for the young startup in 2018.
Kobo360 is an uber-like service for goods haulage. It connects individuals and companies to haulers for easy movement of goods across the country. The startup works with a network of other courier services to reduce the cost and time it takes to transport goods. As a result, its services costs 40% less than other platforms and services like DHL, UPS, and FedEx.
In June 2018, the startup made the news when it made the list of cohorts for the YCombinator Summer ’18 programme. It received a $120,000 equity investment as a result, in return for 7% stake in the company.
Nigerian logistics startup Kobo360 accepted into YC, raises $1.2 millionhttps://t.co/zthPPuVm6c
— Y Combinator (@ycombinator) July 2, 2018
Barely a month later in July 2018, the startup raised an impressive $1.2 million in pre-seed funding led by Western Technology Limited and Africa Future Limited, a Lagos based VC.
The latest round of funding no doubt adds to its glowing reputation. It also helps that its main investor is the hugely influential IFC, the private equity arm of the World Bank.
Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!