Leta Transforms Logistics in Africa with AI-Powered Solutions
Leta, a logistics software firm based in Nairobi, has raised $5 million in funding to enhance its AI-powered platform, which optimizes delivery routes and streamlines processes. The startup aims to reduce high logistics costs in Africa, which burden businesses. As it partners with major brands, Leta’s growth trajectory and commitment to sustainability become evident, leveraging technology to improve supply chain efficiency.
In Africa, businesses incur significantly higher logistics costs, paying up to four times the global average for transporting goods. According to the African Development Bank, logistics can constitute 75% of product costs in the region. Many companies still depend on manual logistics, leading to inefficiencies and delays.
Nairobi’s Leta aims to address these challenges through its AI-driven logistics software. Their platform enhances delivery efficiency by optimizing routes, tracking shipments, and streamlining payments while providing key shipping insights. Recently, Leta secured $5 million in seed funding, primarily from Speedinvest and supported by Google’s Africa Investment Fund and Equator.
Previously, in November 2022, Leta had raised $3 million in pre-seed funding to enhance operations in key markets, including Kenya, Nigeria, Uganda, Zambia, and Zimbabwe. The founder, Nick Joshi, stated that the platform’s load and route optimization technology allows clients to save costs and improve delivery performance by minimizing the fleet size.
Integrating with existing ERP, POS, and OMS systems, Leta’s platform accesses live order data to determine the best vehicle for each delivery. It also automates manifest creation and dispatch planning, adjusting for regional demands. Joshi indicated that the AI component of the system continuously updates routes based on real-time conditions such as traffic patterns or road incidents.
Notably, Leta’s mapping capabilities have attracted the interest of Google, as their platform refines data significantly more than Google Maps, which remains outdated in various parts of Nairobi. Joshi believes that this comprehensive mapping is a valuable resource for Google and enhances the service they offer.
The startup sees financial products as a natural expansion of its logistics platform, exploring options such as fuel cards, vehicle financing, and supply chain financing. Speedinvest’s Deepali Nangia highlighted Leta’s innovative approach, leveraging logistics and fintech to create new growth avenues.
Moreover, Leta contributes to sustainability efforts by assisting businesses in reducing their fleet sizes while maintaining delivery levels, subsequently lowering fuel consumption and emissions. Joshi noted that companies could save substantial amounts monthly with Leta’s solutions.
Currently, Leta partners with over 35 major businesses, including international brands like KFC and Diageo, as well as local entities like EABL and Gilani. The company has experienced impressive growth, scaling its delivery count from 500,000 to 4.5 million within a short period and managing an increased fleet of 7,400 vehicles.
As Leta seeks to further expand its revenue and reach additional markets across Africa and the Middle East, it aims to maintain its software-focused business model, optimizing existing fleet operations rather than owning the assets directly. This strategic approach differentiates it from earlier logistics models in Africa, which are often asset-heavy, resulting in various challenges in the market.
In summary, Leta is revolutionizing logistics in Africa by leveraging AI technology to significantly cut costs and improve efficiency in the supply chain. Their innovative platform not only optimizes delivery routes but also integrates seamlessly with existing business systems, thereby creating a more streamlined process for logistics management. With substantial backing and a strong growth trajectory, Leta continues to expand its influence across the continent while promoting sustainability in transportation.
Original Source: techcrunch.com
