Lori Systems, a leading African logistics and trucking company focused on digitizing haulage, recently secured funding in a pre-Series B round. Among the investors is a notable tech giant, which continues to extend its commitment to supporting innovative startups across the continent. This marks a significant milestone for Lori Systems as it scales its operations and advances its technology-driven solutions to meet Africa’s logistical needs.
Addressing Africa’s Logistical Challenges
Africa’sGoogle’s Strategic Investment in Lori Systems: Strengthening Africa’s Logistics Sector logistics industry faces a host of challenges, with haulage alone accounting for over $180 billion in annual spending. Logistical costs, which represent more than 70% of a product’s price in Africa, stand in stark contrast to just 6% in the United States. This disparity stems from fragmented supply chains, inconsistent pricing, reliance on manual processes, and limited access to financing.
Lori Systems aims to bridge these gaps through an on-demand trucking marketplace that connects shippers with transporters, facilitates the movement of goods, and provides software tools to enhance operational efficiency. Since its launch in 2016, Lori Systems has reportedly facilitated the transportation of goods worth over $10 billion, solidifying its position as a transformative force in the logistics industry.
Driving Growth Amid Market Shifts
The company’s funding journey has seen notable milestones, including a Series A round in 2019 that raised between $20-30 million. Since then, Lori Systems has concentrated on expanding its product offerings and ensuring sustainability. According to CEO Uche Ogboi, the company introduced a fully digitized transport management platform in response to pandemic-related disruptions, resulting in tripled transaction volumes and nearly doubled marketplace revenue rates.
Commenting on the decision to extend its Series A funding rather than pursue a Series B round, Ogboi highlighted the company’s focus on maintaining favorable investment terms while navigating the current market climate. The additional funds will be directed toward scaling new product lines and achieving profitability.
A Growing Presence
Operating in key markets such as Kenya, Uganda, and Nigeria, Lori Systems has established itself as a trailblazer in Africa’s logistics sector. Its innovative approach includes partnering with third-party logistics providers and offering value-added services that enhance the efficiency of shippers and transporters alike.
Strategic Investment for Regional Impact
This funding round aligns with a broader strategy of supporting innovative startups that address real challenges across Africa. The investment aims to enable Lori Systems to scale its solutions further, extend its market reach, and strengthen its contributions to economic development across the continent.
“We see immense potential for technology-driven solutions to unlock economic growth across Africa. Lori Systems exemplifies how innovation can address key challenges in logistics, providing transformative value to businesses and communities alike,” said an investor representative.
Lori Systems’ success story underscores the vital role that technology and strategic investments play in reshaping industries and fostering sustainable growth across Africa.
