Struggling company sees former CEO, Obi Ozor, reclaiming leadership position
In a bid to revive Kobo360, Africa's "Uber of trucks," co-founder and former CEO Obi Ozor has returned to the company, aiming to turn around its financial troubles by the end of 2025. Kobo360's struggles have been marked by leadership churn, stalled haulage operations, and financial troubles, but Ozor's return signals a new chapter for the logistics startup.
The company's cash flow challenges have been attributed to its "pay-now, collect-later" business model, which strained cash flow and necessitated debt and share buybacks to maintain operations. Ozor's strategy to address these issues includes actively buying back shares and taking on ₦10 billion in debt to strengthen the company's working capital and address liquidity strains.
Under Ozor’s leadership, Kobo360 continues to pursue its mission of modernizing logistics across Africa. The company has expanded its presence beyond Nigeria into seven countries and has innovated with technology such as blockchain-based logistics systems developed in collaboration with partners like FEDA. These improvements have enabled delivery speeds that are reportedly three times faster than usual, signaling operational progress.
Financially, Kobo360 has raised substantial funds in the past to fuel expansion — including a $20 million Series A round and a $48 million Series B in 2021. Despite these raises, the logistics sector’s high working capital demands remain a key challenge.
The main challenges Kobo360 faces include working capital shortages, investor confidence and interest, and sector inefficiencies. Ensuring steady capital inflows remains tough, as logistics demands heavy upfront investment and slower cash conversion cycles. African logistics inherently involves infrastructural and regulatory hurdles, adding complexity to the company's operations.
A sale of Kobo360 equity would mark a significant write-off for investors, including Juven, an offshoot of Goldman Sachs, the IFC, and TLcom Capital. One person familiar with the cap table claims that at least one investor has marked down their investment.
Despite these challenges, Kobo360's future plans involve further geographic expansion, technological innovation, and scaling logistics solutions. The company aims to reassure investors of its growth potential and navigate the complexities of Africa's logistics market.
[1] TechCrunch. (2025, March 10). Kobo360 secures $79M in secondary market funding as it looks to address cash flow challenges. Retrieved from https://techcrunch.com/2025/03/10/kobo360-secures-79m-in-secondary-market-funding-as-it-looks-to-address-cash-flow-challenges/
[3] TechCabal. (2025, March 15). Kobo360's new strategy: Focusing on traditional financing and haulage deals to revive the company. Retrieved from https://techcabal.com/2025/03/15/kobo360s-new-strategy-focusing-on-traditional-financing-and-haulage-deals-to-revive-the-company/
- Obi Ozor, Kobo360's co-founder and former CEO, is aiming to revive the logistics startup by the end of 2025, hoping to overcome financial troubles through strategic funding, investments, and debt.
- To strengthen the company's working capital and address liquidity strains, Ozor plans to buy back shares and take on ₦10 billion in debt, in addition to utilizing venture capital and finance from various investors.
- Kobo360's focus on modernizing logistics technology across Africa has already resulted in operational advances, such as three times faster delivery speeds thanks to improvements like blockchain-based logistics systems.
- The logistics sector's high working capital demands, along with investor confidence issues, infrastructural hurdles, and regulatory complexities, have collectively contributed to Kobo360's financial challenges.
- The company's future plans involve geographic and technological expansion, as well as scaling logistics solutions, while reassuring investors of its growth potential within the complex Africa logistics market.
