African Rainbow Capital Investments (ARC) has been an investor in Linebooker since 2017. In the latest round of investment, ARC injected approximately R67 million ($3.5M) into Linebooker, increasing its stake to just over 70% in the company. The primary purpose of this investment is to support Linebooker’s accelerated growth strategy. This strategy is aimed at enhancing Linebooker’s technology and operational capabilities to better serve its customers, especially in the areas of communication with transport companies and managing larger transport volumes. The majority of the investment will be allocated to technology improvements, while a smaller portion will be used for operational and personnel enhancements.
Why the Investors Invested
The decision by ARC to invest further in Linebooker is grounded in several key factors. In the first place, Linebooker has shown substantial growth potential over the years, with its annual revenues doubling in the past three years. This growth, in part, has been attributed to the ongoing challenges faced by Transnet, the state-owned transport company, in providing reliable transport solutions. In sectors such as mining, retail, farming, and manufacturing, Linebooker has filled the void created by Transnet’s inability to meet the transportation needs of these industries.
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Additionally, Linebooker operates in diverse transport sectors, including fast-moving consumer goods (FMCG) and mining bulk. While FMCG operations were less affected by Transnet’s issues, the recent expansion into the mining sector has seen increased customer engagements due to the rail infrastructure’s unreliability. This diversification has helped Linebooker maintain strong growth rates even in the face of Transnet’s challenges.
ARC’s investment is also motivated by the immense potential within the South African transport industry. With a market size of approximately R270 billion ($14.2 Billion) , there is substantial room for growth. Even if Transnet were to resolve its issues and improve its services, the overall market size is large enough to accommodate significant players. Therefore, ARC’s decision to invest further in Linebooker is based on the belief that the company can continue to expand and capture a larger portion of this growing market.
A Look at Linebooker
Linebooker is an online freight platform that connects customers in need of transporting large goods with trucks and other transportation services. The company was founded in 2017 and has experienced rapid growth, with its annual revenues doubling over the past three years.
According to CEO Naudé Rademan, the company’s primary focus is on solving transportation challenges for various industries, including mining, retail, farming, and manufacturing. Linebooker has gained credibility and trust in the market by providing reliable transport solutions, particularly in cases where Transnet has failed to meet the transportation needs of these industries.
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Linebooker’s partnership with ARC Investments has been instrumental in its growth, with ARC now holding just above 70% of the company’s ownership. This latest injection of R67 million in capital from ARC is intended to further enhance Linebooker’s technology and operational capabilities, allowing it to serve its customers more efficiently and handle larger transport volumes.
In the long term, Linebooker’s goal is to continue expanding its market share within the R270 billion transport industry and to improve its technology and platform to offer better pricing and supply for its customers while reducing carbon emissions by optimizing transportation routes. Overall, Linebooker’s success is built on its adaptability, strong partnerships, and a commitment to solving transportation challenges in South Africa.
Linebooker freight Linebooker freight
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the con