Google, Speedinvest Back Kenya’s Leta, who uses AI to make logistics cheaper
African companies pay the world average up to four times to transport goods, which increases the prices of essential elements such as food and medicine. Logistics represents 75% of the costs of products on the continent, according to to the African Development Bank (AFDB). Many of these companies are also based on manual logistics, causing delays.
Logistics software supplier based in Nairobi Years wants to change it all. Its platform fed by AI optimizes delivery routes, follows real-time shipments, rationalizes payments and provides companies with shipping information.
The startup has collected $ 5 million in seed financing to develop its solution, which he says helps companies move cheaper and faster goods through the continent. The European company of VC Speedinvest led La Ronde, with the support of the investment fund in Africa from Google and Equator, a climate technology fund focused on Africa.
In November 2022, the Kenyan logistics startup collected a pre-series of $ 3 million Of several local investors, the money she used to deepen operations on her five main markets: Kenya, Nigeria, Uganda, Zambia and Zimbabwe.
The technology of loading and optimizing LETA routes helps its customers to reduce costs and improve the efficiency of delivery by reducing the number of vehicles necessary for distribution, the founder and CEO Nick Joshi explains.
LETA integrates directly into the ERP, POS and WHO Systems of companies, by drawing live data such as networks, types of products, customer prices and details, explains Joshi.
From there, the platform selects the best vehicle available for each order and decides to load products using first, first output (FIFO) or latest, first-out (LIFO) methods, replacement of the manual, distribution based on intuition. (FIFO first loads the oldest inventory, while LIFO loads the most recent stock first.)
The platform then automates the creation and planning of manifest distribution, optimizing the use of vehicles according to regional demand and the capacity of trucks. Finally, the LETA system, which, according to Joshi, is powered by AI, optimizes the delivery routes in real time.
“For example, if there is a roundabout where trucks or motorcycles fail to finish a turn on this road, the AI signals it as a black list,” said the CEO. “This could be due to floods, police stops, construction or a presidential convoy. The system constantly updates its card layer to reflect these changes. ”
Logistics, integrated finance and sustainability games
LETA’s real -time mapping has become a key asset for Google, one of its investors. Joshi notes that Google Maps has not updated certain areas of Nairobi since 2022, while the LETA platform constantly refines the road and addresses data from live customers deliveries.
“We create a much more robust card and address arrangement, which is why I think Google has found it interesting,” he explains.
By connecting the stakeholders in the supply chain, Joshi considers financial services as a natural extension of the LETA software platform and already pilot new products. Joshi says that potential offers include fuel cards for delivery partners, asset financing for vehicles and devices and the financing of the supply chain for FMCG merchants.
Deepali Nangia, who directs Speedinvest’s investments in Africa and the Middle East, said that the company had supported Leta because it “exploits logistics as a gateway and Fintech as a growth engine, unlocking new commercial opportunities”.
LETA also helps companies reduce the size of the fleet without reducing deliveries, reducing fuel consumption and emissions, which explains the support of the equator.
“A company with 70 trucks saves $ 30,000 per month using Leta,” said Joshi. “We have not yet started to follow carbon emissions, but this is a key goal for this year.”
The Kenyan startup now feeds more than 35 large companies, including global brands like KFC and Diageo, and local giants like Eabl and Gilani, optimizing more than 10,000 daily trips to its five markets.
From Our 2022 coverageLETA experienced massive growth: 500,000 deliveries at 4.5 million, from the past 20,000 tonnes to 150,000, and from the management of 2,000 vehicles to 7,400. Consequently, LETA’s revenues, which he made on a delivery model by delivery, increased by 5x, explains Joshi.
LETA now aims to double income in the coming months while it is developing in more countries across Africa and the Middle East with customers like KFC and Diageo.
Worldwide, Leta Mirrors Early Flexport Before it turns into a technology and asset property. In Africa, logistics startups like Sydy,, Lori (also supported by Google) and Kobo360 adopted a heavy approach to assets, aggregated the trucks and acting as intermediaries. However, this model fought, leading to closings And swivel.
Leta adopts a different approach: just software. Instead of owning or aggregating assets, it is associated with companies that already have fleets, helping them to increase efficiency and optimize use. It is a game book of other global logistics technology companies such as Bring,, IpleetAnd Ship Follow also.
“The first generation of logistics startups in Africa has done hard work by educating the market and proving what is possible,” explains Joshi. “As we entered, some came out or tried to redefine their business. So we knew what the market was looking for and what they needed. ”
