Indeed, this is the third investment of the Google fund focused on Africa. This investment team had already committed to the start-ups SafeBoda and Carry1st.
Kenyan e-logistics service provider Lori Systems recently secured an undisclosed investment from Google and other investors.
The company which started its activities of connecting cargo owners to transporters in 2017 in Kenya will maintain its expansion in this market but also in Nigeria where it expanded its activities in 2019.
Uche Ogboi, Managing Director of Lori Systems explains: "This funding will allow us to continue to improve the efficiency of logistics on the continent [...] We are delighted to have Google as a partner as we continue to develop the operating system for logistics in emerging markets.” The investment represents the third transaction made by Google through its $50 million Africa-focused fund.
This vehicle, announced in October 2021 and targeting start-ups on the continent in the start-up and growth phase, had already carried out two investment operations, first in the Ugandan start-up SafeBoda, last December, and then in the South African game publisher Carry1st.
The fund is part of the American company's $1 billion investment program in Africa over five years. It was announced in October 2021. In its five years of existence, Lori Systems claims to have helped thousands of shippers move more than $10 billion of freight across the continent.
In Africa, logistics operators face fragmented supply and demand markets, as well as high commodity costs. In some countries, up to 75% of a product’s cost is attributed to logistics, compared to only 6% in the United States.
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