Obi Ozor, co-founder and former CEO of Kobo360, has returned to the struggling freight logistics startup in a bid to turn around its fortunes by the end of 2025. Once hailed as Africa’s “Uber of trucks,” Kobo360 raised about $79 million but has faced leadership churn, stalled haulage operations, and financial troubles. Ozor now leads a small team of fewer than ten people, focusing on traditional financing and haulage deals to revive the company.
At least two sources close to Ozor and Kobo360 say investors have written down their shares, effectively exiting the company. One person familiar with the cap table claims that at least one investor has marked down their investment. However, the International Finance Corporation (IFC), one of Kobo360’s backers, refuted claims that it sold its shares to Ozor.
A sale of Kobo360 equity would mark a significant write-off for investors, including Juven, an offshoot of Goldman Sachs, the IFC, and TLcom Capital—firms that once backed Kobo360 as a transformative force in African logistics. The company’s struggles underscore the harsh economics of freight tech in Africa, where businesses must navigate thin margins, heavy capital demands, and unpredictable cash flow.
The sale would also transfer Kobo360’s liabilities—at least ₦10 billion owed to banks, according to a WhatsApp memo—onto Ozor.
Kobo360 declined to comment on this article
TLCom declined to comment on any part of this story.
A former Kobo360 employee who asked not to be named as they were unauthorised to speak on the matter claimed Kobo360’s growth stalled after a bank partner cut off its credit line due to unserviced debt. The startup raised around $10 million in debt financing from unspecified lenders.
Kobo360 launched in 2017 with a bold vision: digitizing freight logistics by matching truck owners with businesses needing to move goods. The model promised to cut inefficiencies, reduce empty return trips, and improve pricing transparency, factors that have long made logistics one of Africa’s most expensive sectors.
For a while, the bet seemed to pay off. In 2019, Kobo360 secured $20 million in Series A funding, followed by a $48 million Series B in 2021. At its peak, it aggregated over 50,000 trucks, expanded into other countries, and signed up corporate clients like Unilever, Dangote, and DHL.
But the company’s Achilles’ heel was always working capital. Kobo360 operated on a model that paid truck drivers upfront but had to wait 30 to 90 days for manufacturers and distributors to settle invoices. This cash flow gap forced it to rely on bank credit lines, a lifeline that vanished when a financial partner cut off funding over unserviced debt.
“Our partnership with these banks was three-way, so tensions on the bank’s side led to us losing access to our customers’ domiciled accounts. These were major clients, and losing their business significantly reduced Kobo360’s trip volume, revenue, and overall growth,” said a former employee who asked not to be named discussing a sensitive matter.
Without working capital, Kobo360 struggled to pay truck drivers on time, leading to declining trip volumes and a downward spiral in revenue. Investors who once backed its growth began to lose faith. In October 2024, CEO Ciku Mugambi—who had replaced Ozor in 2022—stepped down. Several senior executives followed, leaving the company with skeletal staff.
Kobo360’s situation isn’t an isolated case. The logistics sector has seen a drop in investor interest as venture capital firms prioritize profitability over-aggressive expansion.
In 2024, only three African logistics startups (Renda, Fez Delivery, and Cargo Plus) raised venture capital, securing a combined $2.1 million (a fraction of the amounts raised in previous years). Lori Systems, another high-profile freight tech startup, has not disclosed new funding, while Sendy pivoted from logistics before eventually shutting down.
The fundamental challenge? Unlike e-commerce or fintech, which benefit from low marginal costs and strong network effects, logistics is capital-intensive and dependent on credit cycles. Many investors now doubt whether digital freight platforms can scale profitably without constant injections of external funding.
The big question is whether Ozor can revive the company without venture capital. According to sources close to Kobo360, he is seeking traditional financing and haulage partnerships to restart operations, but details remain scant. The company has not publicly announced a turnaround plan, and its CEO position remains vacant.
Editor’s note: This article has been edited to reflect an additional statement from the IFC clarifying that its shares were not sold to Obi Ozor.
