Kobo360 (IFC-41760)

Countries
  • Nigeria
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Oct 13, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
KOBO360 INC
The holder of the loan, grant, or other investment.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 3.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Jan 14, 2019

Disclosed by Bank Sep 11, 2018


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Project Description

IFC is considering an equity investment of upto US$ 3 million in Kobo360 Inc (“Kobo”). Kobo is a long-haul e-logistics B2B platform utilizing an “Uber for trucks” model to develop a marketplace matching cargo owners with long-haul freight needs and truck owners who are able to service them. Through its internally-developed digital platform, Kobo is disrupting the transportation and logistics market in Nigeria offering a strong value proposition to key stakeholders in the sector including cargo owners, transporters (and drivers) and cargo recipients. Kobo optimally matches demand and supply of trucks, providing predictability, reliability, price transparency, and increased utilization of otherwise idle assets in the highly fragmented trucking market in Nigeria. Given the strong population growth expected (Nigeria will be the third largest country in the world by 2050), logistics will become even more important to support booming sectors such as manufacturing, agriculture, commodities, fast moving consumer goods (FMCG), etc.

People Affected By This Project

This Project will result in positive outcomes for the relevant parties in the logistics sector in Nigeria (cargo owners and truck owners/drivers) and the market at large.

For cargo owners, Kobo's platform offers greater access to logistics services through an aggregated platform thereby addressing capacity challenges in fulfilling market demand. By leveraging technology and eliminating middle-men/brokers, Kobo is able to offer lower prices to cargo owners in a market where logistics costs are 1.4-2.8x higher than in the US. In addition, Kobo offers reliability of delivery to cargo owners through real-time tracking of trucks and goods in transit insurance hence ensuring full traceability of goods.

For truck owners and drivers, Kobo offers increased capacity utilization through route optimization and return logistics hence higher incomes for drivers as well as faster payment cycles.

As the company scales and aggregates more drivers and cargo owners onto the platform, Kobo will bring more price transparency and efficiency to the broader sector.

Investment Description
  • International Finance Corporation (IFC)
Private Actors
  • Kobo360 Inc -- Implementing Company
Contact Information

Kobo360 Inc
Obiora Ozor
Chief Executive Officer/Co-Founder
0818 678 0000
info@kobo360.com
22, Ikorodu Road, Jibowu Yaba, Lagos
https://kobo360.com/Info

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/