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Kenya’s Lori Systems Secures Funding, Support from Imperial

November 13, 2020

Lori co-founder and chief executive officer (CEO) Josh Sandler

One of Kenya’s emergent logistics startup Lori Systems which provides supply chain management solutions to cargo owners, ensuring flexibility, reliability and cost savings has secured funding and support from Imperial, an African and European-focused provider of integrated market access and logistics solutions, to expand its product across Africa.

The startup which was founded in 2016, opened operations in Uganda, Rwanda and South Sudan in 2018, and last year expanded to Nigeria. It is also a serial fundraiser, bagging a sizable Series A round last year, and has now taken on further investment as part of its strategic partnership with Imperial. The Imperial Venture Fund, managed by Newtown Partners – a US-based venture capital firm – made the investment in Lori Systems to support its growth in East and West Africa, while their partnership in the Southern African Development Community (SADC) region will help develop and enhance Africa’s road freight industry through digital innovation and enablement.

Lori co-founder and chief executive officer (CEO) Josh Sandler said the partnership with Imperial was validation of the company’s vision of a new era of digitally-enabled and efficient logistics, not only in Africa but in frontier markets more broadly. “As a leading African logistics and market access player, innovation is at the heart of Imperial, and we couldn’t be more proud to partner with an industry veteran that embraces this digital disruption while expanding Lori’s reach across Southern Africa,” he said.

Mohammed Akoojee, group CEO of Imperial, said Lori solved a real problem when it comes to matching volatile demand and reliable supply in Africa’s highly fragmented road freight industry.“As a business that is focused on efficient and innovative logistics and market access solutions, this is a crucial business investment for Imperial and the continent. Investing in Lori Systems will enable the creation of further business opportunities in Africa and provide efficiency for Imperial’s clients and transport operators with whom we collaborate,” he said.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Kenyan Logistics Startup Lori Systems Secures Funding From Imperial Partners To Expand To Southern Africa

November 3, 2020

Lori Systems, the Kenyan e-logistics startup that is funded to the tune of $36.2m is coming to Southern Africa and cementing its presence in West Africa where it confronts competitors such as Kobo360. Imperial, an African and European-focused provider of integrated market access and logistics solutions, has announced an investment in and partnership with Lori Systems to expand its e-logistics technology solutions across Africa.

“Lori Systems’ partnership with Imperial is validation of our vision of a new era of digitally-enabled and efficient logistics not only in Africa but in frontier markets more broadly,” says Joshua Sandler, co-founder and CEO of Lori Systems. “As a leading African logistics and market access player, innovation is at the heart of Imperial, and we couldn’t be more proud to partner with an industry veteran that embraces this digital disruption while expanding Lori’s reach across Southern Africa.”

Here Is What You Need To Know

Although the exact amount of this investment was disclosed, the investment was made from Imperial Venture Fund, managed by Newtown Partners — a US venture capital firm. In March this year, Imperial launched a corporate venture capital (CVC) fund focused on investing in disruptive startups in the logistics industry, with an initial investment of $20 million.
The new investment will enable Lori Systems to support its growth in East and West Africa.
Through the partnership, Imperial will have access to Lori’s proprietary platform, providing shippers and transporters in southern Africa with access to a flexible suite of software applications and data. This will lead to more efficiently-managed operations and fleets.

Why The Investment And Partnership?

“We believe that Lori solves a real problem when it comes to matching volatile demand and reliable supply in Africa’s highly fragmented road freight industry,” says Mohammed Akoojee, group CEO of Imperial. “As a business that is focused on efficient and innovative logistics and market access solutions, this is a crucial business investment for Imperial and the continent.

“Investing in Lori Systems will enable the creation of further business opportunities in Africa and provide efficiency for Imperial’s clients and transport operators with whom we collaborate.”

The partnership between Imperial and Lori Systems will equally provide additional support in Lori’s established East and West African markets and facilitate Lori’s expansion across Southern African markets.

The partnership also brings together Lori’s technology and Imperial’s expertise in logistics to drive similar efficiencies in Southern African markets.

“We believe digital freight exchanges are a compelling business model in emerging markets that complement Imperial’s traditional strength in contracted road freight,” says Llew Claasen, managing partner of Newtown Partners. “We have considered many road freight investment opportunities on the African continent and believe that the Lori Systems team, product and the opportunity that presents itself through the Imperial partnership will create a lot of value.”

*Globally, funding to trucking startups has steadily increased YoY since ’09 and is up more than 27% since 2015. Source: Industry Study: Freight Trucking Startups*

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.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer