African companies pay as much as 4 occasions the worldwide common to move items, driving up costs for necessities like meals and drugs. Logistics make up 75% of product prices on the continent, according to the African Growth Financial institution (AfDB). Many of those companies additionally depend on handbook logistics, resulting in delays.
Nairobi-based logistics software-as-a-service supplier Leta desires to vary all of that. Its AI-powered platform optimizes supply routes, tracks shipments in actual time, streamlines funds, and offers companies with delivery insights.
The startup has raised $5 million in seed funding to scale its answer, which it says helps companies transfer items cheaper and quicker throughout the continent. European VC agency Speedinvest led the spherical, with backing from Google’s Africa Funding Fund and Equator, an Africa-focused local weather tech fund.
In November 2022, the Kenyan logistics startup raised a $3 million pre-seed from a number of native traders, cash it used to deepen operations in its 5 core markets: Kenya, Nigeria, Uganda, Zambia and Zimbabwe.
Leta’s load and route optimization know-how helps its purchasers minimize prices and enhance supply effectivity by decreasing the variety of automobiles wanted for distribution, Founder and CEO Nick Joshi explains.
Leta integrates straight with companies’ ERP, POS, and OMS techniques, pulling in stay order knowledge like SKUs, product varieties, costs, and buyer particulars, Joshi says.
From there, the platform selects the perfect obtainable automobile for every order and decides whether or not to load merchandise utilizing first-in, first-out (FIFO) or last-in, first-out (LIFO) strategies, changing handbook, intuition-based dispatching. (FIFO masses the oldest stock first, whereas LIFO masses the latest inventory first.)
The platform then automates manifest creation and dispatch planning, optimizing automobile use based mostly on regional demand and truck capability. Lastly, Leta’s system, which, in accordance with Joshi, is powered by AI, optimizes supply routes in real-time.
“For instance, if there’s a roundabout the place vans or motorbikes repeatedly fail to finish a activate that route, the AI flags it as a blacklisted route,” mentioned the CEO. “It may very well be because of flooding, police stops, development, or a presidential convoy. The system always updates its map layer to mirror these adjustments.”
Logistics, embedded finance, and sustainability performs
Leta’s real-time mapping has turn out to be a key asset for Google, one in every of its traders. Joshi notes that Google Maps hasn’t up to date some areas of Nairobi since 2022, whereas Leta’s platform constantly refines highway and handle knowledge sourced from stay buyer deliveries.
“We’re creating a way more strong map and handle format, which is why I believe Google discovered it attention-grabbing,” he explains.
By connecting stakeholders throughout the provision chain, Joshi sees monetary providers as a pure extension of Leta’s software program platform and is already piloting some new merchandise. Joshi says potential choices embrace gas playing cards for supply companions, asset financing for automobiles and units, and provide chain financing for FMCG retailers.
Deepali Nangia, who leads Speedinvest’s investments in Africa and the Center East, mentioned the agency backed Leta as a result of it “leverages logistics as a gateway and fintech as a development driver, unlocking new enterprise alternatives.”
Leta additionally helps companies cut back fleet sizes with out chopping deliveries, reducing gas consumption and emissions, which explains Equator’s backing.
“An organization with 70 vans saves about $30,000 month-to-month utilizing Leta,” Joshi claims. “We haven’t began monitoring carbon emissions but, but it surely’s a key purpose for this yr.”
The Kenyan startup now powers 35+ main companies, together with world manufacturers like KFC and Diageo, and native giants like EABL and Gilani, optimizing 10,000+ each day journeys throughout its 5 markets.
Since our 2022 coverage, Leta has seen large development: 500,000 deliveries to 4.5 million, from shifting 20,000 tons to 150,000, and from managing 2,000 automobiles to 7,400. Because of this, Leta’s revenues, which it makes on a per-delivery pricing mannequin, have grown 5x, says Joshi.
Leta now goals to double income within the coming months because it expands into extra international locations throughout Africa and the Center East with purchasers like KFC and Diageo.
Globally, Leta mirrors early Flexport earlier than it shifted into tech-enabled achievement and asset possession. In Africa, logistics startups like Sendy, Lori (additionally backed by Google) and KOBO360 took an asset-heavy strategy, aggregating vans and performing as intermediaries. Nevertheless, this mannequin has struggled, resulting in current closures and pivots.
Leta takes a unique strategy: simply software program. As a substitute of proudly owning or aggregating belongings, it companions with firms that already personal fleets, serving to them increase effectivity and optimize utilization. It’s a playbook different world logistics tech companies like Bringg, Onfleet, and Shipsy additionally comply with.
“The primary era of logistics startups in Africa did the exhausting work by educating the market and proving what’s potential,” says Joshi. “By the point we entered, some had been exiting or attempting to redefine their enterprise. So we knew then what the market was searching for and what they wanted.”
About The Author
