African Logistics Company, Lori Systems Secures pre-Series B Funding From Google

Google recently invested an unknown sum in Lori Systems, an African digital logistics startup.

This is Google’s third such investment on the continent. SafeBoda and Carry1st are the two businesses that Google previously backed with funds from its $50 million Africa Investment Fund.

The fund, which was established to “help the continent’s digital transformation” as part of Google’s wider $1 billion investment in Africa over the course of five years, was introduced by the company’s CEO, Sundar Pichai, in October 2021.

This Lori investment comes after Nairobi, Kenya, the city where Lori Systems was first founded, became home to Google’s first product development center on the continent.

The majority of Lori Systems’ operations are in East Africa, with its base in Kenya. Since its founding by Josh Sandler, Jean-Claude Homawoo, and Ernest Gichini Ngaruiy, the company has grown to include Nigeria and South Africa. By bringing together cargo owners and transporters, assisting shippers in managing their cargo, and digitizing all transport activities from sourcing through paperwork and payments, the company offers solutions in the cargo transportation market.

The startup claims that it has helped carriers and shippers move more than $10 billion worth of freight across the continent. With its success, the business received notice from the Financial Times, which earlier this year ranked it as Africa’s ninth fastest-growing firm.

We’re thrilled to work with Google as we continue to develop the logistics operating system for emerging markets. According to Uche Ogboi, CEO of Lori Systems, “Our vision for the future of logistics in Africa is one that is digital, scalable, and more effective. “We have been successful, reducing prices for cargo owners by up to 20% and increasing vehicle utilization for transporters on our platform by over two times. We are thrilled about this financing since it will enable us to keep advancing logistics efficiencies across the continent.

Google’s Managing Director for Sub-Saharan Africa, Nitin Gajria, remarked on the unannounced investment, saying: “At Google, we realize the revolutionary effect digitalisation can bring to the African continent. The only way for the region’s enormous potential to be fully realized is through innovation. Lori Systems is a fantastic illustration of how technology can be scaled up throughout Africa and how this can lead to significant economic progress. We’re interested to see where a company like this goes in the future.