Karigo

A digital logistics platform that connects trucks
  • Sector Transport & automotive
  • Country Nigeria
  • Founding date June 2016
  • Stage Paying users
KariGO is a mobile App that provides a B2B solutions to truck owners and cargo owners. Though the attraction of the ecosystem is the digital on-demand service, the profit centers are the support services K-Track, KMV Fintech, K-Esusu & K-Revolution. Leveraging on IoT, GPS, telemetery, Fuel and weight sensor technologies, these are products we require funding to scale to rest of Sub-saharan Africa.

General

Sector
Transport & automotive
Category
Enterprise, Software, Hardware
Product usage or interact
Mobile/Tablet (Android))

Business

Target customer
Cargo owners (manufacturers) and individual truck owners
Customer acquisition strategy
providing cost saving to cargo owners and more jobs to the trucks
Revenue model
Our revenue model is based on 15% - 20% commission on the tariff paid by the companies. Meanwhile we pay 50% of the 85% - 80% of the tariff to be received in 15 t0 30days time from the companies in a tranche of 50% at pick-up and 50% balance at delivery. Giving up a huge working capital need and faster working capital cycle.

Market info

Market size
$621,890,547
Competitors
Competitor name
Competitor Website
Kobo360
TruckIT
BHN Logistics
Competition
The competition is not so fierce in the industry due to its size. The haulage industry is estimated to be a $20bln with lesser trucks available to do the jobs available. an estimated 75% deficit of trucks exist within the sector. Our competitors are the logistics companies with finance to acquire assets such as the BHN Logistics.

They can directly compete for haulage contract with the same company, the likes of Kobo360 only compete with us using the same model we have deployed in the market.
Startup traction
We have built our brand to the point where companies have given us exclusive hauling right for their finished goods due to our reliability and consistency.

We have partnered with China's largest manufacturer of trucks to address the truck deficit in Nigeria and the partnership protects any investor investing in acquisition of trucks on our platform.

We are only able to fulfill 7% of all demand for trucks on our platform, thus we have a good problem at hand to solve, grown revenue by 71% YoY while still operating 7% of total capacity.

Every $1million cash burn on trips in a month returns a minimum of 10% in form of platform connection fees.

Total early investment
$5,235,348
Shareholder structure
Owner type
Name
Equity
Chris Oyeniyi
Founder
% 10
Ben Egbe
Co-Founder
% 32
Aliu Folorunsho
Friends
% 5
Kudlha
Friends
% 5
Obi Okehi
Friends
% 15
Silver Ogharoye
Friends
% 13
Dr. Aina
Friends
% 5
Vaya Africa
Company
% 15
Investment round
Angel Investment
Investment amount
$5,235,348
Equity on offer
% 51.0

Team

Chris Oyeniyi  - Nigeria
Benjamin Egbe  - Nigeria
Total team member
9
Comment
Last update: 22.06.2020