KENYA – Kenyan logistics startup Lori Systems has announced its expansion in Nigeria. During the last couple of months, the startup has completed a successful pilot in Nigeria in association with major companies such as Olam, Honeywell Flour Mills, and Flour Mills Nigeria.

Founded by chief executive officer (CEO) Josh Sandler in 2016, Lori Systems provides supply chain management solutions to cargo owners, ensuring flexibility, reliability and cost savings.

It has been a major success in East Africa, with almost half the grain moving through Kenya to Uganda going through the startup’s platform, while it also won multiple bids associated with the newly built US$4 billion railroad system in East Africa. Lori is now quickening the pace of its expansion – after opening operations in Uganda, Rwanda and South Sudan last year, it has now moved into Nigeria.

Over the past 10 months, the startup has completed a successful pilot in Nigeria with some of the country’s top cargo companies, including Olam, Honeywell Flour Mills and Flour Mills Nigeria.

“Lori is at the forefront of revolutionizing cargo transport across Africa from the ground up,” said Uche Ogboi, who was appointed as Lori’s chief operating officer (COO) in July.

“Our mission in Nigeria is to create a more efficient logistics experience for cargo owners who are burdened with the task of moving their goods across the country. We have successfully created a digital platform to enable the movement of goods through a transparent supply chain management system that is affordable, reliable and flexible.”

Since its launch in 2016, Lori Systems has changed the cargo transportation landscape in Kenya by tackling inefficiencies in the industry.

According to the company, Africa spends around US$180 billion on transportation of goods each year. Ogboi said that his company aims to reduce these huge logistics costs through the introduction of its digital platform.

After its launch in Kenya, Lori Systems has also expanded in nine African countries including Uganda, Rwanda and South Africa. The startup has a network of over 2500 truck drivers operating across these countries.

In Nigeria, Lori Systems will compete with Kobo360, another digital logistics platform backed by the International Finance Corporation and TradeDeport, a logistics startup focused on the FMCG sector.

Lori Systems’ expansion in Nigeria follows the startup securing an US$8.7 million funding from undisclosed investors in the month of June.