Kobo360, a Nigerian truck-hailing startup with backing from Goldman Sachs, recently underwent a company-wide layoff across its operations in seven markets. The restructuring followed the departure of the former CEO, who mentioned fundraising challenges as a factor in her resignation. In Nigeria, the largest market for Kobo360, around 30 positions were eliminated from a 50-person team. The exact number of job cuts in other markets is unknown.
Employees affected by the layoffs received a “separation agreement” via email in November 2024. Some former employees, citing confidentiality agreements, revealed that pension payments dating back six months remained outstanding. Kobo360 attributed the delay in these payments to a third-party HR company, currently under investigation by a federal law enforcement agency.
Several leadership exits preceded the layoffs at Kobo360, with at least three executives resigning in November. While one departing executive claimed the timing was coincidental, the company’s board is now in the process of appointing new executives to steer the company’s future direction.
Not unfamiliar with organizational changes, Kobo360 witnessed co-founder departures in previous years. The ongoing internal restructuring has led to operational adjustments, including a temporary pause in most logistics activities except for select fleet management services provided to specific clients.
As the company navigates these changes, it has opted to keep details of its restructuring, financial arrangements, and personnel shifts confidential. The reduction in workforce is expected to lower operational expenses and extend the runway for Kobo360, which last secured funding in a Series B round of $48 million in 2021.
However, raising additional capital may pose challenges for the startup, given the declining investor interest in the Nigerian logistics sector. With only a few logistics startups securing venture capital in 2024, industry experts note a lack of market insight among founders as a hindrance to disruptive innovation in the sector.
Despite the emergence of B2B trucking startups aiming to enhance cost efficiency and trip visibility, challenges such as cargo theft persist, leading to significant financial liabilities. These issues underscore the complexities faced by startups in the transportation industry, including those like Kobo360.