Lori is a logistics company that uses technology to set up shipping between faraway places.
It is a startup backed by venture capitalists that are building Africa’s transportation and logistics infrastructure for the next generation. The start-up is taking on a big problem because every year, Africa spends $180 billion on transportation.
Lori’s market is a good link between freight and transportation because it uses technology and has streamlined processes. The supply chain management system has made it easier for people to talk to each other and has pushed for more openness, flexibility, dependability, and savings.
Since the company was launched in 2016, it has grown and the platform is becoming more and more popular in the market.
The company offers on-demand logistics services for transportation that can be accessed through mobile devices through a network of drivers and retail partners similar to Uber. The East African offices of Lori Systems are in Kenya and Uganda.
They offer long-distance transport solutions that cover everything in terms of logistics management, including Processes, People, and Technology so that their customers can focus on what they do best and spend less time and energy on what they don’t do well.
Their goal is to lower the prices of goods in emerging markets. Lori does provide transportation, but what they bring to the market that no one else does is information and optimization, which is used to make smart decisions to cut down on inefficiencies and make better use of trucking assets.
Lori Systems has also opened a branch in Nigeria, where it faces competition from Kobo360, a transportation logistics company.
How it Works
Lori is an online logistics and transportation hub that makes it easy for shippers and carriers to find each other.
Their goal is to lower the cost of goods in Africa, and a big part of that is to help their customers improve their operations along the cargo route.
They see Africa as a huge, untapped market for freight transportation innovations, and they work hard to help their clients with any problems they may have with their shipments at any point in the supply chain.
Additionally, Lori has made an e-logistics platform that is completely changing the way things work in frontier markets when it comes to the value chain of moving goods.
Founders
Josh Sandler
Josh Sandler, the company’s founder, leads Lori Systems.
He used to work for AFIG FUNDS as a consultant.
Josh Sandler is a successful businessman who graduated from Harvard Business School.
Gichini Ngaruiya
Ernest Gichini Ngaruiya contributed to the creation of Lori Systems.
Before that, he was the co-founder and Chief Technology Officer of la Carte.
Ernest Gichini Ngaruiya attended Alliance High School.
Investors & Funding Rounds
Crystal Stream Capital; Iyinoluwa Aboyeji; Endeavor; EchoVC Partners; Ryan Petersen; Raba; Apoletto Managers; Hillhouse Capital Group; Yuri Milner; Timon Capital & Google.
The Series A funding round for Lori Systems was led by two Chinese investment firms, Hillhouse Capital and Crystal Stream Capital.
EchoVC, which has offices in both Nigeria and the U.S., Flexport CEO Ryan Petersen, and Iyinoluwa Aboyeji, who is from Nigeria, were also investors.
Lori Systems has not disclosed how much money they got for Series A but it is believed to be $30 million raised in the round.
In total, a recent article in the Financial Times said that Lori had raised about $20 million. In a June SEC Form D filing, Lori Systems said that it had given out $29 million worth of stock.
Google has put in another 10 million dollars from its 50 million dollar Africa Investment Fund.
The 54 countries that ratified the agreement want to take advantage of the US$21,9 billion in unrealized trade potential that the African Continental Free Trade Area (AfCFTA) offers. It is anticipated that the AfCFTA would promote commerce inside Africa. The logistics are the key to making this change happen.
The money from Google will help the business grow all over Africa. The company is currently active in 13 African countries, including Uganda, Rwanda, South Sudan, and Nigeria. It has helped thousands of shippers and carriers move more than US$10 billion worth of goods across the continent.
Additionally, the money will be used to grow the business, improve its technology, and hire more people so that it can lead a logistics revolution around the world.
Main Competitors
Loop Freight: Logistics service for truckloads of freight Technology is what makes Loop work.
ACE – Africa Courier Express: This is an African company that helps businesses and individuals with their logistics needs.
Amitruck: Its mobile and web-based trucking logistics platform put shippers and truckers in touch with each other.
Related:
Redavia: Story, Founders, Investors & Funding Rounds