Kobo360, a Nigerian truck-hailing startup backed by Goldman Sachs, conducted company-wide layoffs in November 2024, following fundraising challenges and a leadership shake-up.
Why it matters
Once a high-flying startup, Kobo360’s troubles underscore broader struggles in Nigeria’s logistics sector, where startups face declining investor interest and persistent operational challenges.
Driving the news
- The layoffs affected at least 30 employees in Nigeria, Kobo360’s largest market, reducing its team there from 50 to 20, per four former employees. Cuts in other markets remain unclear.
- Former CEO Cikü Mugambi exited in late 2024, citing difficulty in securing new funding.
- Employees received “separation agreements” via email, which many interpreted as an attempt to avoid labeling the action as layoffs.
State of play
- Unpaid obligations: Two ex-employees claimed pensions have been unpaid for six months. Kobo360 attributed the delay to issues with a third-party HR firm and said a federal law enforcement agency is investigating.
- Leadership vacuum: November also saw the exit of three executives, including Tosin Fadipe, who left to start his own venture. The board is now seeking new leadership.
Zoom out
Leadership changes are not new for Kobo360:
- In 2021, co-founder Ife Oyedele left the company.
- In 2023, former CEO Obi Ozor became Enugu State’s transportation commissioner.
- Ex-employees have described the company as a “tsunami,” highlighting instability.
By the numbers
- Kobo360 last raised $48M in a 2021 Series B round.
- In 2024, only three Nigerian logistics startups—Renda, Fez Delivery, and Cargo Plus—raised a combined $2.1M, including a $200,000 grant.
Between the lines
The layoffs are part of broader restructuring efforts:
- Kobo360 has paused most logistics operations, focusing only on fleet management for a few clients.
- “We’re just keeping the lights on,” one employee told TechCabal.
What they’re saying
- “Kobo360’s internal restructuring, financial arrangements, and personnel changes are strictly confidential,” the company said, declining further comment.
- EchoVC’s Eghosa Omoghui criticized many logistics startups, saying they lack market insights necessary for success.
Source: TechCabal
