Nairobi-based logistics technology company Leta has successfully raised $5 million in a seed funding round aimed at enhancing its artificial intelligence (AI)-powered platform designed to optimize delivery routes and streamline supply chain operations across Africa. The funding round was led by European venture capital firm Speedinvest, with additional participation from Google’s Africa Investment Fund and Equator, an Africa-focused climate tech fund.
Established in 2022 by founder and CEO Nick Joshi, Leta addresses the high costs and inefficiencies prevalent in African logistics. According to the African Development Bank, logistics expenses can constitute up to 75% of product costs on the continent, significantly impacting the prices of essential goods such as food and medicine. Leta’s AI-driven platform integrates seamlessly with existing enterprise resource planning (ERP), point-of-sale (POS), and order management systems (OMS) used by businesses. This integration enables the platform to access real-time order data, including stock-keeping units (SKUs), product types, prices, and customer details. Utilizing this data, the platform automates tasks such as manifest creation and dispatch planning, optimizes vehicle utilization based on regional demand and truck capacity, and determines the most efficient loading strategies, employing methods like first-in, first-out (FIFO) or last-in, first-out (LIFO). Additionally, Leta’s system provides real-time tracking of shipments and optimizes delivery routes using AI, which continuously updates mapping layers to reflect changing road conditions and other logistical challenges.
The recent funding will be allocated to scaling Leta’s solution, with plans to double revenue in the coming months and expand into additional countries across Africa and the Middle East. The company’s platform currently supports over 35 major businesses, including global brands like KFC and Diageo, as well as local giants such as East African Breweries Limited (EABL) and Gilani’s. Leta has experienced significant growth, increasing the number of deliveries from 20,000 tons to 150,000 tons and managing a fleet that has expanded from 2,000 to 7,400 vehicles. This expansion has led to a fivefold increase in revenues.
Deepali Nangia, a partner at Speedinvest, commented on the investment, stating that the firm backed Leta because it “leverages logistics as a gateway and fintech as a growth driver, unlocking new business opportunities.”
Leta’s platform not only aims to reduce operational costs but also contributes to environmental sustainability by lowering fuel consumption and emissions. For instance, a company operating 70 trucks can save approximately $30,000 monthly using Leta’s services. While the company has not yet started tracking carbon emissions, it has identified this as a key goal for the current year.
In addition to its core logistics services, Leta is exploring the integration of financial services into its platform. Potential offerings include fuel cards for delivery partners, asset financing for vehicles and devices, and supply chain financing for fast-moving consumer goods (FMCG) merchants. These initiatives aim to provide comprehensive support to businesses, enhancing efficiency and fostering growth within the African logistics sector.
The successful seed funding round underscores the growing interest in leveraging technology to address logistical challenges in Africa. Leta’s innovative approach positions it to play a pivotal role in transforming the continent’s supply chain landscape, making the movement of goods more efficient and cost-effective.
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