Kobo360, a freight logistics startup that recently raised significant funding, has seen a shift in ownership as former CEO Dr. Obi Ozor has taken over shares from investors. Ozor, who returned to lead the company after stepping down in 2023, is now navigating challenges such as debt and operational issues in an attempt to revitalize Kobo360 through conventional financing and business partnerships.
The sale of shares represents a setback for investors who once believed in Kobo360’s potential to transform African logistics. The struggles faced by the company underscore the tough economic conditions within the freight tech industry in Africa, where companies must manage tight profit margins and financial uncertainties.
Despite these difficulties, stakeholders like the International Finance Corporation (IFC) express their ongoing commitment to supporting innovative ventures in the region. Kobo360’s troubles, including a disruption in credit lines and cash flow gaps, have led to a decline in its operations and investor confidence.
The story of Kobo360 mirrors a broader trend in the logistics sector, where profitability is becoming a priority for venture capitalists over rapid expansion. With only a few logistics startups securing new funding recently, questions arise about the sustainability of digital freight platforms without continuous external investment.
As Kobo360 navigates these challenges, the focus is on potential strategies to revive the company without heavy reliance on venture capital. While details of the turnaround plan remain undisclosed, efforts are reportedly being made to explore traditional financing avenues and partnerships in the haulage industry. The road ahead for Kobo360 is uncertain, with the CEO position currently vacant and no public announcement regarding future plans.