Kobo360 investors sell equity to ex-CEO Obi Ozor as struggles mount
- Kobo360 raised approximately $79 million but has seen a dramatic decline in operations.
- Co-founder Obi Ozor has repurchased shares and taken on ₦10 billion in debt to revive the company.
- The startup's growth stalled after a bank partner cut off its credit line due to unserviced debt.
The situation with Kobo360 illustrates the precarious nature of startups in capital-intensive sectors like logistics, where reliance on external funding can lead to vulnerability. The company's struggles may serve as a cautionary tale for future investors and entrepreneurs in the freight tech space, emphasizing the need for sustainable business models that can withstand economic fluctuations.
