Investors in Kobo360, a once-promising freight logistics startup that raised $79 million, have exited the company, selling their shares to co-founder and former CEO, Obi Ozor. As part of the deal, Ozor will also assume the company’s ₦10 billion debt burden. This development marks a significant downturn for the eight-year-old startup, which was once celebrated as Africa’s “Uber of trucks” but has faced persistent challenges, including leadership instability, operational setbacks, and financial difficulties.
Ozor, who stepped down as CEO in 2023 to become Enugu’s transport commissioner, has now returned to lead a small team of fewer than ten employees. His mission is to revive Kobo360 by leveraging traditional financing and strategic haulage agreements.
For investors, the sale represents a major write-off. Some of the firm’s key backers, including Juven (the African investment arm of Goldman Sachs), International Finance Corporation (IFC), and TLcom Capital, had initially supported Kobo360 as a transformative player in Africa’s logistics industry.
However, the company’s struggles highlight the inherent difficulties in scaling freight tech businesses on the continent, where companies must navigate razor-thin margins, high capital demands, and inconsistent working capital flows. “The challenging macroeconomic environment has created headwinds for startups across emerging markets, including in the logistics sector,” said IFC, which invested in Kobo360 through multiple funding rounds. “IFC remains committed to supporting entrepreneurs driving innovation and development across the continent.”
Kobo360’s financial woes reportedly worsened after a bank partner withdrew its credit line, citing unserviced debt. This move significantly disrupted the startup’s operations, leading to stalled growth and a scaling-down of its workforce.
While Kobo360 had previously secured $10 million in debt financing from unnamed lenders, it was unable to sustain its ambitious expansion plans. Both Kobo360 and TLcom Capital declined to comment on the recent developments.
With Ozor back at the helm, the company now faces a critical turning point. Whether Kobo360 can navigate its financial hurdles and re-establish itself in Africa’s logistics market remains to be seen.
