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Kenyan logistics startup Leta has secured $5 million in seed funding to enhance its AI-driven platform aimed at optimizing delivery routes and reducing transportation costs across Africa.
The funding round was led by European venture capital firm Speedinvest, with participation from Google’s Africa Investment Fund and Equator, an Africa-focused climate tech fund.
Founded in 2021 by CEO Nick Joshi, Nairobi-based Leta integrates with businesses’ enterprise resource planning (ERP), point of sale (POS), and order management systems (OMS) to access real-time order data. Its AI-powered platform automates dispatch planning, optimizes vehicle utilization, and dynamically refines delivery routes based on live conditions, such as traffic congestion and road construction.
Since its $3 million pre-seed funding in November 2022, Leta has experienced significant growth, expanding operations from Kenya into Uganda, Nigeria, Zambia, and Zimbabwe. The startup has increased its managed fleet from 2,000 to 7,400 vehicles and has handled 4.5 million deliveries, transporting 150,000 tonnes of goods. Notable clients include KFC, Diageo, and Fargo Courier.
The newly acquired funds will be used to enhance Leta’s product offerings and solidify its position as a leading logistics technology platform in Africa. The company also plans to expand into additional strategic markets across the continent, including Rwanda and Mauritius.
Deepali Nangia, partner at Speedinvest, highlighted the significance of Leta’s solutions in addressing high transportation costs in emerging markets, where logistics can account for up to 70% of the cost of goods sold. She noted that Leta’s innovative software has driven operational efficiencies for Africa’s leading FMCG brands.
By leveraging artificial intelligence and real-time data, Leta aims to revolutionize the logistics landscape in Africa, enabling businesses to move goods more efficiently and cost-effectively across the continent.
Read more on Tech Gist Africa:
Badili, a Kenyan re-commerce startup has secured a US$400,000 debt facility
Keep IT Cool, a Kenyan startup, has raised funding to support its pan-African goals
BasiGo, a Kenyan startup, has raised $41.5 million in a series A funding round
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