African businesses are paying a hefty price for logistics, with costs reaching up to four times the global average, driving up prices for essentials like food and medicine. According to the African Development Bank (AfDB), logistics make up 75% of product costs on the continent, with many businesses relying on manual logistics, leading to delays. Nairobi-based logistics software-as-a-service provider Leta is on a mission to change this narrative.

Leta's AI-powered platform optimizes delivery routes, tracks shipments in real-time, streamlines payments, and provides businesses with shipping insights. The startup has raised $5 million in seed funding to scale its solution, which it claims is helping businesses move goods cheaper and faster across the continent. European VC firm Speedinvest led the round, with backing from Google's Africa Investment Fund and Equator, an Africa-focused climate tech fund.

In November 2022, the Kenyan logistics startup raised a $3 million pre-seed from several local investors, which it used to deepen operations in its five core markets: Kenya, Nigeria, Uganda, Zambia, and Zimbabwe. Leta's load and route optimization technology helps its clients cut costs and improve delivery efficiency by reducing the number of vehicles needed for distribution, according to Founder and CEO Nick Joshi.

Leta integrates directly with businesses' ERP, POS, and OMS systems, pulling in live order data like SKUs, product types, prices, and customer details. The platform then selects the best available vehicle for each order and decides whether to load products using first-in, first-out (FIFO) or last-in, first-out (LIFO) methods, replacing manual, intuition-based dispatching. Finally, Leta's system, powered by AI, optimizes delivery routes in real-time, taking into account factors like traffic, road closures, and weather conditions.

Leta's real-time mapping has become a key asset for Google, one of its investors. Joshi notes that Google Maps hasn't updated some areas of Nairobi since 2022, whereas Leta's platform continuously refines road and address data sourced from live customer deliveries. This has significant implications for logistics and embedded finance, with Leta piloting new products like fuel cards for delivery partners, asset financing for vehicles and devices, and supply chain financing for FMCG merchants.

Leta's approach to logistics is distinct from its peers, focusing solely on software and partnering with companies that already own fleets, rather than aggregating trucks and acting as intermediaries. This strategy has allowed the startup to scale efficiently and reduce costs for its clients. As a result, Leta has seen massive growth, with revenues growing 5x since 2022. The startup now aims to double revenue in the coming months as it expands into more countries across Africa and the Middle East with clients like KFC and Diageo.

Leta's success has significant implications for the African logistics industry, which has struggled with inefficiencies and high costs. By providing a scalable, technology-driven solution, Leta is poised to revolutionize the way goods are moved across the continent. With its sights set on further expansion, Leta is well-positioned to become a leading player in the African logistics space.

In the broader context, Leta's story highlights the importance of innovation and technology in addressing some of Africa's most pressing development challenges. By leveraging AI and data analytics, Leta is demonstrating the potential for African startups to drive growth, create jobs, and improve lives. As the African logistics industry continues to evolve, Leta's success serves as a beacon of hope for a more efficient, cost-effective, and sustainable future.