Quick Summary: Leta, a Nairobi-based logistics software-as-a-service (SaaS) startup, has developed an AI-powered platform that optimizes delivery routes, tracks shipments in real-time, streamlines payments, and provides businesses with valuable shipping insights. With its latest funding round, the company is set to scale its innovative solution across Africa.
$5 Million Seed Funding Boost
Leta recently secured $5 million in seed funding to enhance its operations and improve efficiency in goods transportation. The funding round was led by European venture capital firm Speedinvest, with additional support from Google’s Africa Investment Fund and Equator, a climate tech fund focused on Africa.
This investment builds on Leta’s previous success. In November 2022, the company raised $3 million in pre-seed funding from local investors, which helped strengthen operations in its five core markets: Kenya, Nigeria, Uganda, Zambia, and Zimbabwe.
Cutting Costs with AI-Driven Load and Route Optimization
Leta’s load and route optimization technology enables businesses to reduce costs and improve delivery efficiency by minimizing the number of vehicles required for distribution. According to founder and CEO Nick Joshi, the platform integrates directly with businesses’ ERP, POS, and OMS systems, allowing it to pull in live order data such as SKUs, product types, prices, and customer details.
Once the data is gathered, the system determines the best-suited vehicle for each order and selects the most efficient loading method—either First-In, First-Out (FIFO) or Last-In, First-Out (LIFO). This automation replaces traditional manual dispatching, making the entire process more efficient. Leta’s AI technology continuously updates and optimizes delivery routes in real-time.
Real-Time Mapping and Smarter Route Selection
The AI system also identifies problematic routes and blacklists them based on real-time data. For instance, if a specific roundabout frequently causes delays due to flooding, police checkpoints, or road construction, the system automatically avoids it. Leta continuously updates its mapping layer to ensure logistics operations remain efficient.
Leta’s advanced mapping capabilities have been a significant asset for Google, one of its investors. While Google Maps has not updated certain areas of Nairobi since 2022, Leta’s platform constantly refines road and address data through live customer deliveries. Joshi highlights that this feature was a key factor in Google’s decision to invest in the company.
Expanding into Financial Services
Understanding the connection between logistics and financial services, Leta is piloting several new financial products. These include fuel cards for delivery partners, asset financing for vehicles and devices, and supply chain financing for fast-moving consumer goods (FMCG) merchants.
Deepali Nangia, who leads Speedinvest’s investments in Africa and the Middle East, emphasized that Leta’s ability to merge logistics with fintech presents new business opportunities. Additionally, Leta’s technology enables businesses to reduce fleet sizes while maintaining efficiency, thereby lowering fuel consumption and emissions—one of the factors that attracted Equator’s investment.
Impact and Future Growth
Leta currently serves over 35 major businesses, including global brands like KFC and Diageo, as well as regional giants such as EABL and Gilani. The platform optimizes more than 10,000 daily trips across its core markets.
Since 2022, Leta has experienced exponential growth:
- Deliveries increased from 500,000 to 4.5 million
- Cargo volume moved grew from 20,000 tons to 150,000 tons
- Fleet size expanded from 2,000 to 7,400 vehicles
- Revenues grew fivefold through a per-delivery pricing model
Looking ahead, Leta aims to double its revenue as it expands into new markets across Africa and the Middle East. Unlike asset-heavy logistics startups such as Sendy, Lori, and KOBO360, Leta focuses solely on software, partnering with businesses that own fleets to enhance efficiency and asset utilization.
A Strategic Market Approach
Joshi acknowledges the contributions of earlier logistics startups in educating the market and proving the feasibility of tech-driven logistics. “By the time we entered, some of these companies were exiting or redefining their business. We knew exactly what the market needed,” he explains.
With its AI-driven approach, Leta is well-positioned to transform Africa’s logistics industry, making goods transportation faster, smarter, and more cost-effective for businesses across the continent.
