Goldman Sachs-backed Kobo360 cut jobs in November as part of restructuring

Kobo360, a Nigerian truck-hailing startup backed by Goldman Sachs, implemented a company-wide layoff across its seven markets in November 2024. The job cuts followed the exit of immediate ex-CEO Cikü Mugambi who cited difficulty with fundraising as one of the reasons for her departure. In its largest market, Nigeria, Kobo360 cut at least 30 roles from its 50-person team, according to four employees affected by the layoffs. It is unclear how many roles were cut in other markets.

Employees were sent an email containing a “separation agreement” in November 2024, which many interpreted as the company avoiding calling the event a layoff, said two former employees who declined to be named because of confidentiality clauses in those agreements. “Pension obligations dating back six months remain unpaid,” those people claimed. 

In an email to TechCabal, Kobo360 blamed the delay on a third-party HR company. “This matter is currently the subject of an active investigation at a federal law enforcement agency,” said a company spokesperson. 

The layoffs follow other leadership departures at Kobo360. At least three executives also resigned in November. One of those executives told TechCabal the timing of his exit was coincidental. 

Kobo360’s board is currently in the process of appointing new executives, a critical step in determining the company’s future trajectory. 

Kobo360 is no stranger to leadership changes or job cuts. In 2021, co-founder Ife Oyedele left to pursue other interests. Two years later, co-founder and ex-CEO Obi Ozor accepted a position as transportation commissioner in Enugu State. 

“We often joke that Kobo360 is a tsunami as you can lose your job in a shake-up at any time,” an ex-employee who declined to be named because of confidentiality clauses in his separation agreement told TechCabal. Another ex-employee who left the company in 2021 also described the company as a ‘tsunami’ on Glassdoor, a site where employees can publish anonymous reviews about their workplaces.

Beyond the layoffs and exits, Kobo360 is restructuring its business, leading to a slowdown.  Kobo360 paused most logistics operations except for a handful of clients to which it provides fleet management services.

“We’re just keeping the lights on, handling tasks like invoicing and reconciling past trips,” an employee who asked not to be named discussing private company issues told TechCabal. 

“Kobo360’s internal restructuring, financial arrangements, and personnel changes are strictly confidential,” the company said in an email to TechCabal, declining to comment on layoffs or restructuring plans.

A smaller workforce will reduce operating costs and extend the runway for a company which last raised $48 million in a Series B round in 2021.

Raising money may be an uphill battle for the startup as investor interest in the sector is shrinking in Nigeria. Only three logistics startups raised venture capital in 2024—Renda, Fez Delivery, and Cargo Plus, and they raised $2.1 million between them—$200,000 raised by Fez Delivery was a grant.  

Eghosa Omoghui of EchoVC, an early-stage VC firm, believes most of the founders backed so far lack the crucial market insight necessary for disruption and product market fit. “This is why giants [in their target market] like Dangote still invest in their trucking fleets,” he notes. 

Many B2B trucking startups have launched since 2018, promising to provide cost efficiency to cargo owners by increasing the visibility of trips and using well-vetted third-party truck drivers. However, these startups have ironically fallen prey to the very issues they aimed to solve, especially cargo theft which costs can cause liabilities running into hundreds of millions per trip.