Investors in Kobo360, a freight logistics startup, have sold their shares to co-founder and former CEO Dr. Obi Ozor. This development comes as the company struggles with financial troubles, leadership churn, and stalled haulage operations.
Ozor, who stepped down as CEO in 2023, is back at the helm, leading a team of less than ten people. He has taken on existing debt of about ₦10 billion. The sale marks a significant write-off for investors, including Juven, the African investment arm of Goldman Sachs, IFC, and TLcom Capital.
Kobo360’s struggles highlight the challenges faced by freight tech startups in Africa. The company’s growth stalled after a bank partner cut off its credit line due to unserviced debt. Kobo360 operated on a model that paid truck drivers upfront but had to wait for manufacturers and distributors to settle invoices, creating a cash flow gap.
The company’s situation is not unique, as the logistics sector has seen a decline in investor interest. Venture capital firms are now prioritizing profitability over aggressive expansion. The fundamental challenge facing logistics startups is that they are capital-intensive and dependent on credit cycles, making it difficult to scale profitably without constant injections of external funding.
Ozor is seeking traditional financing and haulage partnerships to restart operations, but details remain scarce. The company has not publicly announced a turnaround plan, and its CEO position remains vacant.
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