Struggling company welcomes back its former leader, Obi Ozor, to navigate challenges ahead
In a bid to revive Africa's once-promising logistics startup, Kobo360, its co-founder and former CEO, Obi Ozor, made a comeback in 2025. The move was part of a strategic plan to regain control and guide the company towards a more sustainable financial model.
Kobo360, popularly known as the "Uber of trucks," has faced a series of challenges, including leadership changes, stalled operations, and financial troubles. The company, which launched in 2017 with a mission to digitise freight logistics and improve pricing transparency, saw its growth stall after a bank partner cut off its credit line due to unserviced debt. This setback left the company with a skeletal staff, following the departure of CEO Ciku Mugambi and several senior executives.
The financial woes of Kobo360 were further exacerbated by its "pay-now, collect-later" model, which required significant borrowing to pay truck drivers upfront, while waiting 30 to 90 days for manufacturers and distributors to settle invoices. This cash flow gap led to a series of debt obligations, with at least one bank partner cutting off its credit line.
In an effort to alleviate the financial burden, Ozor took on approximately ₦10B (Nigerian Naira) in debt as part of the reacquisition of the company. This move signifies the financial strain Kobo360 was under.
Ozor's strategy for Kobo360's recovery involves reducing its reliance on venture capital funding, operational improvements, and exploring alternative funding options. By shifting away from venture capital, Ozor aims to stabilise financial operations and allow for more strategic decision-making without external pressures.
The focus on operational strengths could help enhance profitability and competitiveness, as Kobo360 had previously shown success in improving logistics efficiency across Africa, reducing delivery times significantly. The specifics of alternative funding strategies are not detailed, but Ozor's actions suggest a potential shift towards more traditional financing methods or internal financial management techniques to stabilise the company.
Innovation could also play a key role in Kobo360's recovery. In 2021, the company explored integrating blockchain technology to enhance logistics management, which could increase efficiency and reduce costs.
While Kobo360 has not publicly announced a turnaround plan, the company's CEO position remains vacant. The logistics sector has seen a drop in investor interest, with only three African logistics startups raising venture capital in 2024, securing a combined $2.1 million, a fraction of the amounts raised in previous years.
Other high-profile freight tech startups, such as Lori Systems and Sendy, have faced similar challenges. Lori Systems has not disclosed new funding, while Sendy pivoted from logistics before eventually shutting down. This trend reflects a shift in venture capital firms' priorities, favouring profitability over aggressive expansion.
As Kobo360 embarks on its road to recovery, the journey promises to be challenging, but with Ozor at the helm, there is hope for a resurgence of Africa's "Uber of trucks."
- Obi Ozor, in his return to Kobo360 as co-founder and former CEO, seeks to guide the logistics startup towards a more sustainable financial model, following a series of challenges and financial troubles that included a bank partner cutting off its credit line.
- To reduce its reliance on venture capital funding and alleviate financial strain, Ozor aims to stabilize Kobo360's financial operations by shifting away from the venture capital approach and exploring alternative funding options.
- As part of Kobo360's recovery strategy, innovation could play a crucial role, with the potential integration of blockchain technology to enhance logistics management, which may increase efficiency and reduce costs.
- Despite facing a drop in investor interest and securing limited funding compared to previous years, the journey for Kobo360's resurgence, now led by Ozor, promises to be challenging but offers hope for a revival of the popular fintech startup in Africa, often referred to as the "Uber of trucks."
