Uber-Like eLogistics Startup Lori Systems Raises Undisclosed Amount in Series A Round Led by Chinese Investors
Lori Systems, a Pan-African logistics company based in Nairobi, has raised a Series A round led by Chinese investors Crystal Stream Capital and Hillhouse Capital.
Nigeria and US-based EchoVC Partners, Flexport’s CEO Ryan Petersen, DST, Endeavor, Timon Capital, and co-founder of Flutterwave and Andela, Iyinoluwa Aboyeji, also participated in the funding round.
The total amount raised in the Series round was not disclosed. Jean-Claude Homawoo, Lori Systems co-founder, explained that the details of the fund raised was not released because it is a vanity metric that distracts from the company’s main goal.
“Lori has never released fundraising details as we feel it is a vanity metric that distracts from what matters most: our mission of lowering the cost of goods in frontier markets,”Jean-Claude Homawoo, Lori Systems co-founder,
Financial Times recently pegged the total funding raised at $20 million. The Series A round follows the $6.2 million seed money Lori systems raised from US investors in 2018.
Speaking on the series round, Josh Sandler, Lori Systems CEO said that the fund will be used to ramp up operations and hire the best team to drive a revolution in logistics.
“We are using the round to ramp up operations, build up our technology, and hire a best in class team…that can drive a global revolution in logistics,”Josh Sandler, Lori Systems CEO
Founded in Nairobi, Kenya, in 2016, Lori systems provides infrastructure for on-demand trucking logistics services through an Uber-like network of drivers and merchant partners. Lori systems have already expanded operations to Congo, Rwanda, and Uganda; and more recently, West African countries like Ghana and Nigeria.
Since, Lori’s expansion into Nigeria in September it has appointed Uche Ogboi from EchoVC as its CFO and Efayomi Carr, former Quona Capital associate, as they go head to head with Kobo360 in the Nigerian logistics market.
As an added boost, the new influx of funds will give Lori systems the needed financial backing to find a foothold in the market and also match the $30M fund Kobo360 raised for expansion earlier in August.
Revolution of logistics through technology is a key feature Lori is exploiting to accomplish its goals of lowering the cost of goods in frontier markets. With the new fund, opportunities abound for the East Africa company to upgrade their tech while they grow and expand.
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