Leta, a Nairobi-based logistics SaaS provider, aims to reduce logistics costs in Africa using AI technology. With a recent $5 million seed funding led by Speedinvest, the company optimizes delivery routes and streamlines operations for businesses. Leta’s impact includes significant cost savings, real-time tracking, and an increase in efficiency, positioning it for growth in the logistics market across Africa.
Transporting goods in Africa is significantly more expensive than the global average, with logistics costs making up about 75% of product prices, according to the African Development Bank. Manual logistics processes frequently lead to delays for many businesses, driving up the prices of essential goods such as food and medicine. To address this issue, Leta, a Nairobi-based logistics software-as-a-service provider, has introduced an AI-powered platform designed to optimize delivery routes, facilitate real-time shipment tracking, and streamline payment processes while providing valuable insights for businesses.
Leta has successfully raised $5 million in seed funding, which is earmarked for scaling its innovative logistics solutions. Led by European VC firm Speedinvest, this funding round also received support from Google’s Africa Investment Fund and Equator, a climate tech-focused investment group. Previously, in November 2022, Leta secured $3 million in pre-seed funding directed towards bolstering operations in five key markets: Kenya, Nigeria, Uganda, Zambia, and Zimbabwe.
The company’s load and route optimization technology is designed to minimize costs and enhance delivery efficiency. Founder and CEO Nick Joshi emphasizes that the platform utilizes live order data to select suitable vehicles based on product types, prices, and customer details, streamlining what was once a manual process of dispatching deliveries. The system implements first-in, first-out (FIFO) and last-in, first-out (LIFO) inventory methodologies to optimize vehicle utilization.
Leta automates several logistics processes, including manifest creation and dispatch planning, which allows for optimized vehicle usage according to regional demand and truck capacities. Using AI, the platform then continuously optimizes delivery routes in real-time, ensuring that routes are expedient and efficient. Joshi illustrated this with an example: if a roundabout presents challenges for trucks, the AI automatically flags it as a restricted route, adjusting to factors like flooding or construction.
This real-time mapping feature is a valuable asset for investor Google, as Joshi points out that Google Maps is not frequently updated in some Nairobi areas. Leta’s platform enhances this mapping capability, offering more accurate and frequently updated road and address data essential for logistics efficiency. As a natural extension of its logistics platform, the company is piloting financial services, including fuel cards and supply chain financing solutions for merchants in the fast-moving consumer goods sector.
Deepali Nangia from Speedinvest stated that the firm supported Leta due to its ability to integrate logistics with financial technology, thereby opening up new business opportunities. Leta’s operational efficiency also supports sustainability by enabling companies to reduce their fleet sizes without affecting delivery capabilities, thus minimizing fuel consumption and emissions. Joshi claims a company with 70 trucks can save approximately $30,000 monthly using Leta’s services.
Since its inception, Leta has expanded its influence across 35 major businesses, including prominent international and local brands like KFC and Diageo, conducting over 10,000 daily trips across its operational markets. The startup’s growth trajectory from its last coverage in 2022 is significant, as it scaled deliveries from 500,000 to 4.5 million and tripled the amount of cargo managed, resulting in a fivefold increase in revenue driven by a per-delivery pricing model. The company plans to double its revenue while exploring new geographical markets in Africa and the Middle East.
Unlike other African logistics startups that have often relied on asset-heavy models, Leta has taken a technology-first approach. Instead of owning trucks or fleets, it partners with existing fleet owners to enhance their efficiency and resource utilization. This strategy aligns with global logistics tech firms like Bringg and Onfleet and positions Leta favorably within the evolving landscape of the logistics sector. Joshi notes that earlier African logistics startups have paved the way for this model, allowing them to enter the market equipped with insights about customer needs and operational demands.
Leta is revolutionizing logistics in Africa by utilizing an AI-driven approach that optimizes efficiency and reduces costs for businesses. With substantial funding from prominent investors, it is scaling operations across several countries and enhancing delivery processes. By focusing on software solutions rather than asset ownership, it distinguishes itself from previous logistics models, positioning itself for sustained growth and innovation in the industry.
Original Source: techcrunch.com
