TechCrunch website reportIt is said that Google has already invested in African logistics startupsLori Systems, which will increase its market value again after the B round of financing.
Lori Systems was officially founded in 2017 by Josh Sandler, Jean-Claude Homawoo, and Ernest Gichini Ngaruiy. It is based in Kenya and initially focused on East Africa. It is currently expanding its business to Nigeria in West Africa and South Africa in the South. Its market value in 2020 was approximately US$1.1 million.
Lori Systems currently offers services that allow users to easily book freight logistics services via mobile phone and have their goods delivered via large trucks. According to reports, Africa spends over $1800 billion annually on transportation costs, with logistics handling fees accounting for nearly 70% of the product's price. However, this proportion is barely 6% in the US market. Therefore, the same product can be expensive depending on the region. Lori Systems aims to address this issue.
Therefore, Lori Systems hopes to match goods delivery needs through mobile phones, allowing goods to be traded in the market at more reasonable prices. This has also attracted investment from institutions such as Google, who believe that this will assist the African market in digital transformation and bring greater development possibilities.
Google did not disclose the actual amount of its investment, but it recently announced plans to expand its investment in the African market, which offers greater potential for growth. This investment marks the third in a previously announced $50 million investment to support growth in the African market. Prior to this, Google invested in Ugandan startup SafeBoda in December 2021, building an aggregator app for financial payments, food delivery, and ride-hailing services. It also invested alongside a16z in Carry1st, a game publisher and developer.
