Kenya’s Lori Systems, an e-logistics company offering digital transport management solutions, has raised Series B funding from Big Tech company Google and its existing investors.
The investment received from Google is the Big Tech company’s third investment from its $50 Million African Investment Fund which was announced in October last year by CEO Sundar Pichai. The latest development follows the launch of Google’s first product development centre in Africa in Nairobi, Kenya. After announcing the African Investment Fund, Google made its first investment in SafeBoda, a Kenyan ride-hailing startup, kick-starting its investment in tech-led initiatives in Africa.
Lori Systems charges itself with the onus of helping shippers and carriers transport cargo across the continent of Africa. It was founded in 2017 and since then the company has moved more than $10 billion worth of freight. The company was listed earlier this year by Financial Times as the continent’s seventh fastest-growing company.
Lori Systems is a pioneer in the infantile e-logistics segment in Africa. It helps reduce costs and the challenges associated with the cargo journey by connecting shippers to transportation and providing solutions that help efficiently manage cargo and transporters, and digitalize the whole process from transport to documentations and even payments.
Commenting on the company’s investment and Lori Systems, Google’s Managing Director for sub-Saharan Africa said, “At Google, we understand the transformative power digitization can bring to the African continent. The region has so much potential, but innovation can unlock this. Lori Systems is a great example of how technology can be scalable across Africa and how, in turn, this can drive meaningful economic development.”
“In recent years, the global logistics industry has seen much innovation. However, global supply chains are in dire need of modernization, with technologies yet to reach a critical scale. On the continent, the African Continental Free Trade Area (AfCFTA) is expected to lead to an 81% increase in intra-African trade, providing a $21.9 Billion opportunity in untapped trade potential that the 54 ratifying countries are hoping to capitalize on over the next five years. Logistics is key to unlocking this opportunity,” Jean-Claude Homawoo, Lori Systems Co-founder & CPO said.
Lori Systems CEO Uche Ogboi spoke about the importance of Google’s investment in the company and its partnership. “We’re excited to have Google as a partner as we continue to build the operating system for emerging market logistics. Our vision of the future of logistics in Africa is one that is digital, scalable and more efficient,” the CEO said adding that “We have been successful, achieving up to 20% price reduction for cargo owners and nearly 2x increase in truck utilization for transporters on our platform. We are excited about this funding as it will allow us to continue driving superior efficiencies across logistics on the continent.”