The cost of transporting goods in Africa is significantly higher than the global average, with logistics costs accounting for 75% of product costs, according to the African Development Bank. This results in higher prices for essential items like food and medicine. Many African businesses rely on manual logistics, which can lead to delays. Nairobi-based logistics company Leta aims to address these issues with its AI-powered platform, which optimizes delivery routes, tracks shipments in real-time, and streamlines payments.

Leta has secured $5 million in seed funding to expand its operations across the continent. The investment round was led by European VC firm Speedinvest, with participation from Google’s Africa Investment Fund and Equator, an Africa-focused climate tech fund. This funding follows a $3 million pre-seed round raised by Leta in November 2022, which was used to establish a presence in five core markets: Kenya, Nigeria, Uganda, Zambia, and Zimbabwe.

Leta’s platform uses load and route optimization technology to help clients reduce costs and improve delivery efficiency. By integrating with businesses’ existing systems, Leta can access live order data and select the best available vehicle for each order. The platform then automates manifest creation and dispatch planning, optimizing vehicle use based on regional demand and truck capacity.

The company’s real-time mapping is also a key asset, providing Google with updated road and address data. Leta’s CEO, Nick Joshi, notes that Google Maps has not updated some areas of Nairobi since 2022, while Leta’s platform continuously refines its map layer based on live customer deliveries.

Logistics, Embedded Finance, and Sustainability Plays

Leta sees financial services as a natural extension of its software platform and is piloting new products, including fuel cards for delivery partners, asset financing for vehicles and devices, and supply chain financing for FMCG merchants. Deepali Nangia, who leads Speedinvest’s investments in Africa and the Middle East, backed Leta because it “leverages logistics as a gateway and fintech as a growth driver, unlocking new business opportunities.”

Leta’s approach to logistics is different from other African startups, which have taken an asset-heavy approach by aggregating trucks and acting as intermediaries. Instead, Leta partners with companies that already own fleets, helping them boost efficiency and optimize utilization. This playbook is also followed by global logistics tech firms like Bringg, Onfleet, and Shipsy.

Since its previous funding round in 2022, Leta has seen significant growth, with deliveries increasing from 500,000 to 4.5 million, and revenues growing 5x. The company now aims to double its revenue in the coming months as it expands into more countries across Africa and the Middle East with clients like KFC and Diageo.

Leta’s success is a testament to the potential for logistics tech to drive growth and efficiency in Africa. By addressing the challenges of high logistics costs and inefficient delivery systems, Leta is helping to reduce prices for essential items and improve the overall quality of life for consumers across the continent.