Kobo360, a Nigerian based logistics company is planning an expansion into North Africa, the Middle East, and South Asia markets.
The development was revealed by Kagure Wamunyu, Kobo360 CEO Africa Region, in a conversation with Techpoint.
Since Kobo360’s launch in Nigeria in 2017, it has expanded into Togo, Kenya, and Ghana in Africa. With an added mandate to enter 10 new African countries by the end of 2020.
However, the company’s focus appears to be shifting towards global operations and expansions.
Do they have what it takes?
Obi Ozor, co-founder and CEO of Kobo360, recently appointed Kagure as head African operations, a move that foreshadows Kobo360’s big expansion plans.
Kobo360 also got a recent feature among the top five African startups with deals worth more than $1 million in 2019. In addition to this, they raised of over $36 million in funding all of which could serve as catalysts for the company’s expansion plans.
But they are up against some serious competition. In the middle east, for instance, logistics companies like Hellman who won the Automotive Logistics of The Year 2019 at the Transport & Logistics in Dubai have a stronger presence and trust in the market. This could make survival in the new region considerably more difficult.
Kobo360 currently boasts of a fleet of over 10,000 trucks and is providing affordable end-to-end haulage services in countries where it has a presence.
Backed by both local and foreign investors, Kobo360 has the financial backing to venture into the global market, but because they are yet to gain traction in markets outside Nigeria the viability of global expansion is uncertain.
Kagure thinks otherwise, however. She believes the company’s impact in Nigeria can be easily replicated in most of the markets the company plans to expand to.
Although Kobo360 peddles affordability as one of its major selling points, which can cater for cost pressure in a new market for global expansion, Kobo360 will have to adopt global practice.
If you’d like to get featured on our Entrepreneur Spotlight, click here to share your startup story with us.
Get latest Technology news, reviews, business-related content with a deliberate emphasis on the African narrative and insightful analysis in Nigeria – straight to your inbox.