Kobo360 Cuts Jobs Amid Leadership Changes, Financial Struggles
TLDR
- Kobo360, a Nigerian truck-hailing startup backed by Goldman Sachs, laid off employees across its seven markets last November
- At least 30 staff members were cut from its 50-person Nigerian team and the total number of affected roles in other markets
- Leadership turmoil continues, with at least three executives resigning in November
Kobo360, a Nigerian truck-hailing startup backed by Goldman Sachs, laid off employees across its seven markets in November 2024. At least 30 staff members were cut from its 50-person Nigerian team, and the total number of affected roles in other markets is undisclosed. The layoffs followed the departure of ex-CEO Cikü Mugambi, who cited fundraising difficulties as a key challenge.
TechCabal reported that affected employees received a “separation agreement,” which some interpreted as avoiding the term “layoff. " Former employees claim unpaid pension obligations dating back six months remain unresolved, a matter the company attributes to a third-party HR firm and says is under federal investigation.
Leadership turmoil continues, with at least three executives resigning in November. Kobo360’s board is in the process of appointing new leadership to guide its future. The company, which paused most logistics operations except for fleet management, is restructuring to reduce costs and extend its runway after raising $48 million in a 2021 Series B round.
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Key Takeaways
Kobo360’s layoffs and restructuring highlight broader challenges facing logistics startups in Nigeria. Despite promises of cost efficiency and operational transparency, many such startups grapple with unresolved issues, including cargo theft and market inefficiencies, that they aim to disrupt. Investor interest in the logistics sector has waned. Only three startups—Renda, Fez Delivery, and Cargo Plus—raised a combined $2.1 million in 2024, reflecting diminishing VC enthusiasm. More so, giants like Dangote maintain control by investing in their fleets. The sector remains riddled with risks that even tech-enabled startups struggle to mitigate, raising questions about the viability of asset-light models in such markets.
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