Kobo360, one of Nigeria’s best-funded logistics technology startups, grew from a fast-rising digital freight platform that attracted $30 million in funding to a company weighed down by liabilities estimated at more than ₦10 billion after years of cash flow pressures and operational challenges.
Founded in 2017 by Obi Ozor and Ife Oyedele, Kobo360 set out to modernise Africa’s road freight industry by connecting cargo owners with truck operators through a technology platform often compared to ride-hailing services for long-haul logistics. The startup quickly expanded across multiple African markets and attracted global investors betting on the continent’s growing logistics sector.
The company’s breakthrough came in 2019 when it secured a $30 million financing package comprising a $20 million Series A equity investment led by Goldman Sachs and backed by investors including the International Finance Corporation (IFC), TLcom Capital and Y Combinator, alongside $10 million in working capital financing from Nigerian commercial banks. Brandspur Brand News understands the funding was intended to support product development, geographic expansion and strengthen the company’s logistics infrastructure.
Kobo360’s business model relied on matching manufacturers and large cargo owners with truck operators while advancing payments to drivers before receiving settlement from corporate customers. Although the platform attracted major clients including Dangote, Unilever, Olam, Honeywell and DHL, the payment cycle created significant working capital demands because many large companies settled invoices weeks or months after deliveries were completed.
The situation became more challenging during and after the COVID-19 pandemic, when lockdowns disrupted freight movement across several African markets. The company was forced to rethink its aggressive expansion strategy and shift its focus towards improving operational efficiency and profitability as growth slowed.
Reports indicate that the business later encountered deeper financial difficulties after a key lending partner reportedly withdrew its credit support, limiting Kobo360’s ability to finance upfront payments to truck owners and drivers. As liquidity tightened, driver payments were delayed, customer activity weakened and confidence in the platform declined.
The company’s financial obligations eventually grew to an estimated ₦10 billion, highlighting the capital-intensive nature of freight technology businesses that depend heavily on continuous access to working capital and credit facilities.
Leadership also changed during the company’s difficult period. In 2023, co-founder Obi Ozor stepped down as Chief Executive Officer after his appointment as Enugu State Commissioner for Transportation, with Cikü Mugambi taking over the leadership of the company.
Subsequent reports suggested Ozor later returned to regain control of the company after investors agreed to transfer their equity, with the move aimed at reviving Kobo360’s operations despite its substantial debt burden.
Kobo360’s experience has become a notable case study within Africa’s startup ecosystem, illustrating that raising significant venture capital does not guarantee long-term sustainability. Industry observers say logistics businesses face unique financing pressures because they often pay service providers immediately while waiting extended periods for payments from large corporate customers.
Despite its financial setbacks, Kobo360 remains one of Nigeria’s most recognised logistics technology brands, and its journey continues to shape discussions about sustainable growth, working capital management and the realities of building technology-enabled infrastructure businesses across Africa.
