Nairobi-based logistics startup Leta has successfully raised $5 million in seed funding to enhance its AI-driven logistics optimization platform. The funding round was led by Speedinvest, with participation from Google’s Africa Investment Fund and climate-focused fund Equator. The investment aims to further develop Leta’s technology, which streamlines delivery operations, reduces costs, and enhances efficiency for businesses across Africa.
Leta was founded in 2021 by Nick Joshi, an entrepreneur with extensive experience in logistics and supply chain management. The company was established to tackle Africa’s long-standing logistics inefficiencies by leveraging technology to reduce operational costs and improve delivery accuracy.
In many African markets, logistics expenses contribute significantly to product costs sometimes making up as much as 75% of retail prices. Leta’s platform is designed to combat these inefficiencies by automating dispatch planning and optimising vehicle usage. By doing so, businesses can reduce fleet sizes without compromising delivery efficiency, leading to lower fuel consumption and emissions.
Leta’s AI-powered routing system integrates with business ERP, POS, and OMS systems, allowing real-time data analysis to match shipments with the most suitable vehicles and optimize loading strategies. The system continuously updates based on real-time road conditions, helping businesses navigate disruptions such as construction, flooding, or traffic checkpoints.
Since securing a $3 million pre-seed round in 2022, Leta has expanded operations across Kenya, Nigeria, Uganda, Zambia, and Zimbabwe. The company has attracted major corporate clients, including KFC, Diageo, EABL, and Gilani. The platform currently optimises over 10,000 trips per day and has facilitated 4.5 million deliveries, a significant increase from 500,000 deliveries 2022.
Leta’s fleet management capabilities have also grown significantly, now overseeing 7,400 vehicles, up from 2,000 two years ago. This expansion has resulted in a fivefold increase in revenue over the same period.
Leta competes with several logistics optimization startups across Africa, including Bwala and Duhqa. These companies also focus on improving supply chain efficiency through technology. However, Leta differentiates itself by offering AI-driven dispatch automation, real-time vehicle tracking, and integrations with enterprise systems, making it a more holistic solution for businesses managing large-scale logistics operations.
Beyond logistics, Leta is venturing into embedded finance, piloting services such as fuel cards, asset financing for vehicles, and supply chain financing for fast-moving consumer goods (FMCG) merchants. This diversification aims to strengthen supply chains and enhance operational efficiency for businesses across Africa.
One of Leta’s key advantages is its real-time mapping technology, which has proven to be more up-to-date than Google Maps in certain African cities. This strategic capability likely contributed to Google’s investment in the startup, as the tech giant looks to improve its logistics-related data services in emerging markets.
With this new funding, Leta aims to double its revenues and expand further into Africa and the Middle East. Unlike traditional asset-heavy logistics models, Leta’s software-driven approach offers businesses a scalable and cost-effective alternative.
