Lori Systemsthe e-logistics company that digitizes transportation and provides shippers with solutions to efficiently manage their freight and carriers, today announced the receipt of an investment from Google (amount not disclosed).
Referred to by the Financial Times earlier this year as Africa’s seventh fastest growing companyLori Systems has helped thousands of shippers and carriers move over $10 billion in freight across the continent since its inception in 2017.
According to Knight Frank’s Logistics Africa report, 75% of a product’s price in Africa is attributed to logistics (compared to just 6% in the United States).
On the continent, logistics operators are faced with a multitude of problems; fragmented supply and demand markets with inconsistent pricing, paper documentation and limited or no access to finance.
A pioneer in e-logistics in Africa, Lori Systems reduces the cost of goods by eliminating pain points along the freight journey: seamlessly connecting shippers to transport, providing shippers with solutions to efficiently manage their freight and their carriers, and digitizing their entire transport operations from procurement, transport, documentation and payments.
This new investment is the third in Google’s $50 million Africa Investment Fund, announced by CEO Sundar Pichai in October 2021.
This follows the launch of Google’s first product development center on the continent, in Nairobi, Kenya, the city where Lori Systems was first launched.
“At Google, we understand the transformative power that digitalization can bring to the African continent. There is so much potential in the region, but it is only through innovation that it can be fully tapped. Lori Systems is a great example of how technology can be scalable across Africa and how, in turn, this can lead to meaningful economic development.We are excited to see where the future takes a company like this. comments Nitin Gajria, Google’s General Manager for Sub-Saharan Africa.
Jean-Claude Homawoo, co-founder and CPO of Lori Systems, comments: “In recent years, the global logistics industry has seen many innovations. However, global supply chains are in dire need of modernization, with technologies that have yet to reach critical scale. On the continent, the African Continental Free Trade Area (AfCFTA) is expected to drive an 81% increase in intra-African trade, providing an opportunity of $21.9 billion in untapped trade potential that the 54 ratifying countries hope to capitalize on. over the next 5 years. Logistics is key to unlocking this opportunity.
“We are delighted to have Google as a partner as we continue to develop the operating system for emerging markets logistics. Our vision for the future of logistics in Africa is one that is digital, scalable and more efficient. said Uche Ogboi, CEO of Lori Systems, “We have been successful, achieving up to 20% price reduction for freight owners and almost 2X truck utilization for carriers on our platform. We are delighted with this funding as it will allow us to continue to improve the efficiency of logistics on the continent.
Learn more about Lori Systems
With a vision to reduce freight costs across Africa, Lori Systems has helped thousands of shippers and carriers move more than $10 billion in freight across the continent since its inception in 2017.
According to Knight Frank’s Logistics Africa report, $180 billion is spent annually on transport in Africa and logistics accounts for up to 75% of a product’s price (compared to 6% in the US).
Lori has significantly improved logistics transparency, flexibility, reliability and costs in 13 countries across Africa, and plans to continue expanding into frontier markets across the continent and beyond.