African companies pay as much as 4 occasions the worldwide common to move items, driving up costs for necessities like meals and medication. Logistics make up 75% of product prices on the continent, according to the African Improvement Financial institution (AfDB). Many of those companies additionally depend on handbook logistics, resulting in delays.
Nairobi-based logistics software-as-a-service supplier Leta needs to vary all of that. Its AI-powered platform optimizes supply routes, tracks shipments in actual time, streamlines funds, and supplies companies with transport insights.
The startup has raised $5 million in seed funding to scale its resolution, which it says helps companies transfer items cheaper and sooner 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 buyers, cash it used to deepen operations in its 5 core markets: Kenya, Nigeria, Uganda, Zambia and Zimbabwe.
Leta’s load and route optimization expertise helps its purchasers reduce prices and enhance supply effectivity by lowering the variety of automobiles wanted for distribution, Founder and CEO Nick Joshi explains.
Leta integrates immediately with companies’ ERP, POS, and OMS techniques, pulling in stay order knowledge like SKUs, product sorts, costs, and buyer particulars, Joshi says.
From there, the platform selects the perfect out there 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 response to Joshi, is powered by AI, optimizes supply routes in real-time.
“For instance, if there’s a roundabout the place vehicles or motorbikes repeatedly fail to finish a activate that route, the AI flags it as a blacklisted route,” mentioned the CEO. “It might be attributable to flooding, police stops, building, or a presidential convoy. The system continuously updates its map layer to mirror these modifications.”
Logistics, embedded finance, and sustainability performs
Leta’s real-time mapping has turn out to be a key asset for Google, one in all its buyers. Joshi notes that Google Maps hasn’t up to date some areas of Nairobi since 2022, whereas Leta’s platform constantly refines highway and deal with knowledge sourced from stay buyer deliveries.
“We’re creating a way more strong map and deal with structure, which is why I believe Google discovered it attention-grabbing,” he explains.
By connecting stakeholders throughout the availability 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 embody gasoline playing cards for supply companions, asset financing for automobiles and gadgets, 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 progress driver, unlocking new enterprise alternatives.”
Leta additionally helps companies cut back fleet sizes with out chopping deliveries, reducing gasoline consumption and emissions, which explains Equator’s backing.
“An organization with 70 vehicles 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 12 months.”
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 protection, Leta has seen huge progress: 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 nations throughout Africa and the Center East with purchasers like KFC and Diageo.
Globally, Leta mirrors early Flexport earlier than it shifted into tech-enabled success and asset possession. In Africa, logistics startups like Sendy, Lori (additionally backed by Google) and KOBO360 took an asset-heavy strategy, aggregating vehicles 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 property, it companions with corporations that already personal fleets, serving to them increase effectivity and optimize utilization. It’s a playbook different world logistics tech corporations like Bringg, Onfleet, and Shipsy additionally observe.
“The primary era of logistics startups in Africa did the onerous work by educating the market and proving what’s potential,” says Joshi. “By the point we entered, some have been exiting or attempting to redefine their enterprise. So we knew then what the market was on the lookout for and what they wanted.”