Google and Speedinvest Invest in Kenya’s Leta: Revolutionizing Logistics with AI for Cost Savings
In Africa, logistics costs can be significantly higher than the global average, impacting the prices of essential goods such as food and medicine. According to the African Development Bank (AfDB), logistics account for a staggering 75% of product costs across the continent. This challenge often stems from businesses relying on outdated manual logistics processes, which can lead to delays and inefficiencies. However, Nairobi-based logistics software-as-a-service (SaaS) provider Leta is on a mission to revolutionize this landscape.
Leta’s Innovative Approach to Logistics
Leta has developed an AI-powered platform that optimizes delivery routes, tracks shipments in real time, and streamlines payments, ultimately providing businesses with valuable shipping insights. Recently, the startup secured $5 million in seed funding to scale its solution, which aims to reduce the costs and improve the speed of goods transportation across Africa.
Funding and Growth Milestones
European venture capital firm Speedinvest led the funding round, with additional support from Google’s Africa Investment Fund and Equator, a climate tech investment fund focused on Africa. This recent investment follows a successful $3 million pre-seed round in November 2022, which Leta used to enhance its operations in key markets including Kenya, Nigeria, Uganda, Zambia, and Zimbabwe.
How Leta Optimizes Supply Chain Efficiency
Leta’s innovative technology provides clients with powerful load and route optimization capabilities. According to Nick Joshi, Founder and CEO of Leta, this platform enables businesses to:
- Reduce costs by minimizing the number of vehicles required for distribution.
- Integrate seamlessly with existing ERP, POS, and OMS systems.
- Automate dispatch planning and manifest creation.
- Optimize delivery routes in real-time based on regional demand.
The platform intelligently selects the best vehicle for each order and utilizes inventory management techniques such as first-in, first-out (FIFO) and last-in, first-out (LIFO) for efficient product loading.
Real-Time Mapping and Future Innovations
Leta’s emphasis on real-time mapping has made it an attractive partner for Google, as the tech giant has noted that some areas in Nairobi have not been updated on Google Maps since 2022. Joshi highlights that by continuously refining road and address data derived from live customer deliveries, Leta is establishing a more reliable mapping system.
Moreover, the company is exploring the integration of financial services into its platform. Potential offerings could include:
- Fuel cards for delivery partners.
- Asset financing for vehicles and devices.
- Supply chain financing for fast-moving consumer goods (FMCG) merchants.
Environmental Impact and Client Base
Leta’s solutions not only enhance efficiency but also lower fuel consumption and emissions, aligning with Equator’s focus on sustainability. According to Joshi, a business operating a fleet of 70 trucks can save approximately $30,000 monthly by utilizing Leta’s services. Although the company has not started tracking carbon emissions yet, this is a key goal for the year ahead.
Currently, Leta supports over 35 major businesses, including global brands like KFC and Diageo, along with local powerhouses such as EABL and Gilani. The company has seen remarkable growth, scaling from 500,000 deliveries to 4.5 million deliveries, and managing a fleet that increased from 2,000 vehicles to 7,400 vehicles.
Looking Ahead
As Leta continues to expand, the company aims to double its revenue by entering more markets across Africa and the Middle East. With its commitment to optimizing logistics through software rather than traditional freight management, Leta is poised to lead the next wave of logistics innovation in the region.
For further insights, explore how other logistics startups are evolving in Africa, such as Sendy and Lori.
