Lori Systems, a Kenyan based logistics startup that connects cargo owners with truck fleets, has secured nearly US$30 million in a Series A round of financing led by Chinese investors Hillhouse Capital Group and Crystal Stream Capital.
Apoletto Asia, the investment vehicle of DST Global founded by Russian billionaire founder Yuri Milner, EchoVC, Timon Capital, Raba, Ryan Peterson (CEO of Flexport), Iyinoluwa Aboyeji (founder of Flutterwave, Andela), Endeavor and others participated in the new round.
Founded in 2016 by Josh Sandler and Ernest Gichini Ngaruiya, Lori’s tech-enabled and operations-driven marketplace efficiently connect transport to cargo. The supply chain management system brings transparency and has pushed significantly improved flexibility, reliability, and cost savings (savings upwards of 18%) according to the company.
Lori Systems is actively operating in Kenya, Uganda, Rwanda, Ethiopia, South Sudan, and the Democratic Republic of the Congo. It also launched in Nigeria in late September 2019.
Wang Mengqiu, founding partner of Crystal Stream Capital, in a statement said, “As one of the first Chinese venture capital funds to venture into the African market, Crystal Stream Capital has conducted field visits and investigations to conclude that it is the best time to make investments in the region, due to Africa’s rapid economic growth, demographic dividend and booming mobile internet.
Lori Systems will use the funding to further upgrade its technology, products and business operations, as well as the expanding its team.
Josh Sandler, founder and CEO of Lori, said, “The traditional logistics industry is being optimized by data and technology. Equipped with Internet technology, Lori Systems will lead the logistics revolution in Africa.”