Leta Secures Funding to Transform Logistics in Africa with AI Solutions

Leta is a Nairobi-based logistics SaaS provider that uses AI to reduce transportation costs for African businesses, which currently face high logistics expenses. The startup has raised $5 million in seed funding to optimize delivery routes, manage shipments, and streamline payments. With a focus on integration and real-time mapping, Leta’s platform significantly enhances operational efficiency and positions the company for further expansion across Africa and the Middle East.

Kenya’s Leta, a logistics software-as-a-service provider, aims to revolutionize transportation in Africa, where businesses incur logistics costs that are up to four times the global average. This is particularly impactful as logistics account for 75% of product prices on the continent, driving up costs for essential goods like food and medicine. Leta’s AI-driven platform optimizes delivery routes, follows shipments in real-time, streamlines payments, and provides valuable shipping insights.

Having successfully raised $5 million in seed funding, spearheaded by European VC firm Speedinvest and supported by Google’s Africa Investment Fund, Leta intends to scale its operations and assist businesses in transporting goods more efficiently and affordably across Africa. Previously, in November 2022, the startup secured $3 million in pre-seed funding to deepen its operational footprint in key markets including Kenya, Nigeria, Uganda, Zambia, and Zimbabwe.

Leta’s innovative technology enhances cost management and delivery efficiency by minimizing vehicle utilization. Founder and CEO, Nick Joshi, highlights the platform’s ability to seamlessly integrate with existing ERP, POS, and OMS systems, thereby extracting live order data pertinent to logistics operations.

The platform selects suitable vehicles for each order, applying either first-in, first-out (FIFO) or last-in, first-out (LIFO) loading methods. This process shifts away from traditional manual dispatching methods. Subsequently, the platform automates the creation of manifests and dispatch plans, optimizing vehicle utilization according to regional demands. Joshi notes that its AI-powered system continuously enhances delivery routes based on real-time environmental factors.

Leta’s mapping capabilities serve as a valuable asset for Google, addressing inconsistencies in road data updates. Moreover, by facilitating connections among supply chain participants, Joshi perceives potential for financial services to extend from Leta’s offerings, with plans for products such as fuel cards and supply chain financing.

Deepali Nangia of Speedinvest affirmed her firm’s investment in Leta, recognizing how the startup exploits logistics as a gateway while leveraging fintech to stimulate growth. Many businesses using Leta have reported significant savings, with some achieving reductions in fleet size without compromising delivery times, resulting in diminished fuel costs and environmental impact.

The startup has achieved notable growth, increasing deliveries from 500,000 to 4.5 million and tonnage from 20,000 to 150,000 since its inception. Currently, Leta services over 35 major businesses, including global brands like KFC and Diageo, and aims to double its revenue as it ventures into further territories across Africa and the Middle East.

The differentiated approach of Leta positions it uniquely within the logistics landscape, as it focuses solely on software without owning assets. By collaborating with existing fleet owners to enhance operational efficiency, it forges a path distinct from other logistics startups in Africa. Joshi credits early logistics ventures in Africa for paving the path and equipping Leta with the insights necessary to meet market demands.

In summary, Leta is redefining logistics in Africa through its AI-powered platform that enables businesses to operate more efficiently and cost-effectively. The startup’s recent funding successes and strategic partnerships position it well to scale throughout the continent while addressing critical logistical challenges. By leveraging existing assets and focusing on software-based solutions, Leta aims to foster sustainable growth in the logistics sector across Africa.

Original Source: techcrunch.com