Nairobi-based logistics software-as-a-service (SaaS) provider Leta has raised $5 million in seed funding to enhance its AI-driven platform, which aims to optimize the transportation of goods across Africa.
Per TechCrunch, the round was led by European venture capital firm Speedinvest, with backing from Google’s Africa Investment Fund and Equator, an Africa-focused climate tech fund.
This investment underscores the growing interest in leveraging AI to improve efficiency and reduce costs in Africa’s complex logistics ecosystem.
Founded in 2021 by Ibrahim Donga, Leta is tackling one of the continent’s most pressing challenges: high logistics costs and inefficiencies in last-mile delivery.
The company’s platform integrates directly with enterprise resource planning (ERP), point of sale (POS), and order management systems (OMS), allowing it to access real-time order data, including stock-keeping units (SKUs), product types, prices, and customer details.
By doing so, Leta eliminates the need for manual dispatching, reducing human error and increasing efficiency.
The platform employs AI to assign the most suitable vehicle for each order and determine the best loading method—either first-in, first-out (FIFO) or last-in, first-out (LIFO)—ensuring that deliveries are completed in an optimal manner.
Furthermore, it automates dispatch planning and manifest creation, streamlining operations for businesses in retail, manufacturing, and distribution. Leta’s AI dynamically refines delivery routes in real-time, responding to traffic patterns and other logistical disruptions.
Since its pre-seed funding round in 2022, Leta has seen impressive growth. It has expanded from handling 500,000 deliveries to 4.5 million, increased the volume of goods moved from 20,000 tons to 150,000 tons, and scaled its managed fleet from 2,000 vehicles to 7,400.
The company now serves over 35 major businesses, including global brands like KFC and Diageo, optimizing more than 10,000 daily trips across Kenya, Tanzania, Uganda, Rwanda, and Zambia.
With this new funding, Leta plans to expand into additional markets across Africa and the Middle East, positioning itself as a leader in AI-driven logistics solutions.
As African e-commerce and retail continue to grow, AI-driven logistics innovations like Leta’s will play a crucial role in reducing costs, improving efficiency, and enabling faster deliveries for businesses and consumers alike.
