African logistics startup Lori Systems raises Series A led by Chinese investors

African on-demand trucking logistics company Lori Systems has raised a Series A round led by Chinese investors Hillhouse Capital and Crystal Stream Capital.

Other participating investors included Nigeria and U.S.-based EchoVC, Flexport CEO Ryan Petersen and Nigerian founder Iyinoluwa Aboyeji.

Lori Systems is not disclosing the amount of the Series A. DealStreet Asia reported the round amount at $30 million earlier Friday, but Lori Systems’ CEO Josh Sandler would not confirm that. That figure was “something lost in translation” and “a mischaracterization of the raise,” he told TecCrunch on a call.

The company issued a clarification to initial reporting in a Medium post. On the reason for the non-disclosure, “Lori has never released fundraising details as we feel it is a vanity metric that distracts from what matters most: our mission of lowering the cost of goods in frontier markets,” Lori Systems co-founder Jean-Claude Homawoo told TechCrunch.

A recent Financial Times piece pegged Lori’s total funding raise at $20 million. In an SEC Form D filing in June Lori Systems issued $29 million in equity, though details weren’t given to which parties.

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Founded in Kenya in 2016, the company provides mobile-based on-demand trucking logistics services through an Uber-like network of drivers and merchant partners. Lori Systems has operations in East Africa in Kenya and Uganda.

The company expanded to Nigeria in September 2019, where it faces a competitor in trucking logistics company Kobo360.

“We are using the round to ramp up operations, build up our technology, and hire a best in class team…that can drive a global revolutions in logistics,” Lori Systems CEO Josh Sandler said.

The company recently hired Nigerian Uche Ogboi from EchoVC to become its CFO and former Quona Capital associate Efayomi Carr.

Lori Systems won Startup Battlefield Africa in 2017.