Dr. Obi Ozor, co-founder of freight logistics startup Kobo360, is leading an ambitious revival after reclaiming control of the company through an equity transfer. His turnaround plan focuses on restructuring ₦10 billion in debt and securing fresh financing to restart operations by Q2 2025, according to sources close to the company.
Kobo360’s comeback depends on securing long-term haulage contracts with major shippers, including manufacturers and distributors. These contracts are essential for contract-backed financing, where banks provide funds based on guaranteed future revenue. In a WhatsApp message to laid-off employees, some of whom are still owed salaries, Ozor assured them that crucial deals were near completion and that operations would resume by Q2 2025, with plans to rehire staff by 2026.
Once a leading logistics-tech startup in Africa, Kobo360 raised over $79 million from investors such as Juven, Goldman Sachs’ Africa investment arm, the International Finance Corporation (IFC), and TLcom Capital. The company expanded into Kenya, Ghana, Benin, and Burkina Faso, aggregating over 50,000 trucks and working with corporate giants like Unilever, Dangote, and DHL.
However, its aggressive expansion hid financial instability. Kobo360 relied heavily on short-term bank loans instead of sustainable revenue. The crisis deepened when a key banking partner cut its credit line, leaving Kobo360 unable to pay truck owners and suppliers. As financial troubles mounted, investors pulled out, key executives resigned, and by December 2024, the company had paused operations in multiple markets and laid off staff.
Despite these setbacks, Ozor is determined to rebuild Kobo360. He has assembled a lean team focused on cost-cutting, debt restructuring, and restoring core operations. However, questions remain about the company’s revised business model and its ability to secure financing.
In a WhatsApp memo seen by TechCabal, Ozor expressed optimism, stating, “Companies for over a thousand years have struggled, come to the brink of total failure, and some—through grace, luck, or grit—have pulled themselves out of the ashes to emerge even more resilient and successful.”
