Kobo360 financial challenges leads CEO to an early exit
Cikü Mugambi, CEO of Kobo360, a logistics startup that provides access to trucks for businesses like Dangote, Unilever, and Flour Mills, has resigned after one year. Her resignation, which she disclosed during a company-wide meeting on 29 October, follows a period of expansion, but financial challenges for the company. At least three people with knowledge of the matter claimed there were some whispers about her impending resignation in the past week.
Ciku Mugambi initially joined Kobo360 in 2021, moving from her role at the International Finance Corporation (IFC), where she was Chief Operating Officer (COO), after co-founder Obi Ozor’s exit in August 2023.
Mugambi’s elevation to CEO brought hope for stability and growth, but economic pressures from the pandemic and investor reluctance hampered Kobo360’s fundraising efforts. Under her leadership, the company reportedly managed to break even in its Nigerian operations. This was in itself a good achievement, but challenges in accessing fresh capital continued.
The startup had a bright start, launching in 2017 and raising $6 million in a 2018 seed round led by the International Finance Corporation (IFC). Kobo360 quickly established itself as a key logistics partner for companies like Dangote, Unilever, and Flour Mills.
Kobo360 uses data analytics and artificial intelligence to reduce inefficiencies in last-mile delivery, provide transparency and visibility, reduce communication gaps within the entire ecosystem, optimize pick-ups and deliveries, and improve routes in real-time. Its predictive analysis also gives businesses valuable insights and enables them to make informed decisions, thereby enhancing productivity and improving customer experience.
In 2019, it raised $30 million (equity and debt) from investors like TLCom, Y Combinator, and IFC in a Series A round. However, by 2022, the company struggled to close a Series B round after the pandemic created uncertainty for logistics companies. Cofounder Obi Ozor admitted, “We couldn’t find an investor to anchor the [2021] $50 million equity round we had in mind at the time, and we almost ran out of money, to be honest.”
Two people familiar with the company’s finances claimed that under Mugambi’s leadership, the company broke even in its Nigerian business. Yet, its attempts to raise funding hit a wall, those people said. On the call announcing her exit, Mugambi also alluded to the difficulty in raising new funding. Now, Kobo360 is expected to reveal its new leadership soon and hopes to address its funding challenges while adapting to the evolving logistics sector across Africa.
