Kobo360 Investors Exit as Ex-CEO Buys Back Struggling Startup
TLDR
- Investors in Nigerian freight logistics startup Kobo360, which raised $79 million, have sold their shares to co-founder and former CEO Dr. Obi Ozor
- Ozor, who left Kobo360 in 2023 to become Enugu State’s transport commissioner, has returned to lead a small team of under ten people
- Kobo360’s challenges stemmed from its business model, which paid truck drivers upfront while waiting 30 to 90 days for payments
Investors in Nigerian freight logistics startup Kobo360, which raised $79 million, have sold their shares to co-founder and former CEO Dr. Obi Ozor, marking a major write-off for early backers like Juven and TLcom Capital. The deal includes Ozor taking on ₦10 billion ($15.82 million) in existing debt, highlighting the financial struggles of the once-promising startup.
Ozor, who left Kobo360 in 2023 to become Enugu State’s transport commissioner, has returned to lead a small team of under ten people in a bid to revive the company. Kobo360, once considered "Africa’s Uber for trucks", faced leadership turnover, halted operations, and declining investor confidence due to working capital issues.
The International Finance Corporation (IFC) confirmed that it has not sold its equity in the company. Kobo360 and other investors declined to comment. Kobo360’s challenges stemmed from its business model, which paid truck drivers upfront while waiting 30 to 90 days for payments from manufacturers and distributors. When a key bank partner withdrew a credit line, the company’s cash flow collapsed, forcing it to cut operations.
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Points clés à retenir
Kobo360’s decline is part of a broader slowdown in African logistics tech funding, with investors prioritizing profitability over rapid expansion. In 2024, only $2.1 million was raised across three logistics startups—a fraction of previous years. Similar companies like Lori Systems have gone silent on new funding, while Sendy shut down after pivoting away from logistics. Unlike fintech or e-commerce, logistics remains capital-intensive and reliant on stable credit cycles. With venture funding drying up, companies must explore alternative financing models to sustain operations. Ozor’s plan for Kobo360 remains unclear, but sources indicate he is pursuing traditional financing and haulage partnerships instead of venture capital. Whether this approach can revive the company remains uncertain, as the broader logistics sector struggles with liquidity and scalability challenges.
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