Lori Systems, the Kenyan startup that provides on-demand trucking logistics services across Africa, has launched a major effort to compete with Nigeria’s Kobo360 in Africa’s growing digitalised trucking services. Lori Systems has sealed a $30 million Series A funding round led by Chinese investors Hillhouse Capital and Crystal Stream Capital.
Here Is The Deal
- This funding round is remarkable because it is again announcing the growing appetite of Chinese investors in Africa’s startup ecosystem.
- The funding round led by Chinese investors Hillhouse Capital and Crystal Stream Capital also saw participation from other investors, including Nigeria and U.S.-based EchoVC, Flexport CEO Ryan Petersen and Nigerian founder Iyinoluwa Aboyeji.
- Although Lori Systems did not officially disclose the amount of the Series A, DealStreet Asia reported the round amount at $30 million.
That figure was “something lost in translation” and “a mischaracterization of the raise,” Lori Systems’ CEO Josh Sandler said in an interview, about DealStreet Asia’s report.
- The company issued a clarification to initial reporting in a Medium post.
Read also: Nigerian Logistics Startup Kobo360 Is Changing The Game With Its Latest $30m Funding
On the reason for the non-disclosure:
“Lori has never released fundraising details as we feel it is a vanity metric that distracts from what matters most: our mission of lowering the goods in frontier markets,” Lori Systems co-founder Jean-Claude Homawoo said in an interview.
- However, a recent Financial Times piece pegged Lori’s total funding raise at $20 million
What Lori Does
Founded in Kenya in 2016, the Lori provides mobile-based on-demand trucking logistics services through an Uber -like network of drivers and merchant partners. The startup has operations in East Africa in Kenya and Uganda.
The company recently expanded to Nigeria in September 2019, where it faces a competitor in trucking logistics company Kobo360.
“We are using the round to ramp up operations, build up our technology, and hire a best in class team…that can drive a global revolutions in logistics,” Lori Systems CEO Josh Sandler said.
The company recently hired Nigerian Uche Ogboi from EchoVC to become its CFO and former Quona Capital associate Efayomi Carr.
Lori Systems won Startup Battlefield Africa in 2017.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world