African businesses pay up to four times the global average to transport goods, driving up prices for essentials like food and medicine. Logistics make up 75% of product costs on the continent, according to the African Development Bank (AfDB). Many of these businesses also rely on manual logistics, leading to delays.Nairobi-based logistics software-as-a-service provider Leta wants to change all of that. Its 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 says is helping businesses move goods cheaper and faster across the continent. European VC firm Speedinvest led the round, with backing from Googles 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, money it used to deepen operations in its five core markets: Kenya, Nigeria, Uganda, Zambia and Zimbabwe. Leta, a Kenyan supply chain and logistics SaaS provider, raises $3M to scale in AfricaLetas load and route optimization technology helps its clients cut costs and improve delivery efficiency by reducing the number of vehicles needed for distribution, Founder and CEO Nick Joshi explains.Leta integrates directly with businesses ERP, POS, and OMS systems, pulling in live order data like SKUs, product types, prices, and customer details, Joshi says.From there, the platform 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. (FIFO loads the oldest inventory first, while LIFO loads the most recent stock first.)The platform then automates manifest creation and dispatch planning, optimizing vehicle use based on regional demand and truck capacity. Finally, Letas system, which, according to Joshi, is powered by AI, optimizes delivery routes in real-time.For example, if theres a roundabout where trucks or motorbikes repeatedly fail to complete a turn on that route, the AI flags it as a blacklisted route, said the CEO. It could be due to flooding, police stops, construction, or a presidential convoy. The system constantly updates its map layer to reflect these changes.Logistics, embedded finance, and sustainability playsLetas real-time mapping has become a key asset for Google, one of its investors. Joshi notes that Google Maps hasnt updated some areas of Nairobi since 2022, whereas Letas platform continuously refines road and address data sourced from live customer deliveries.Were creating a much more robust map and address layout, which is why I think Google found it interesting, he explains. By connecting stakeholders across the supply chain, Joshi sees financial services as a natural extension of Letas software platform and is already piloting some new products. Joshi says potential offerings include fuel cards for delivery partners, asset financing for vehicles and devices, and supply chain financing for FMCG merchants.Deepali Nangia, who leads Speedinvests investments in Africa and the Middle East, said the firm backed Leta because it leverages logistics as a gateway and fintech as a growth driver, unlocking new business opportunities.Equator closes $55M fund to bring more private capital to African climate techLeta also helps businesses reduce fleet sizes without cutting deliveries, lowering fuel consumption and emissions, which explains Equators backing. A company with 70 trucks saves about $30,000 monthly using Leta, Joshi claims. We havent started tracking carbon emissions yet, but its a key goal for this year.The Kenyan startup now powers 35+ major businesses, including global brands like KFC and Diageo, and local giants like EABL and Gilani, optimizing 10,000+ daily trips across its five markets.Since our 2022 coverage, Leta has seen massive growth: 500,000 deliveries to 4.5 million, from moving 20,000 tons to 150,000, and from managing 2,000 vehicles to 7,400. As a result, Letas revenues, which it makes on a per-delivery pricing model, have grown 5x, says Joshi.Leta 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.Globally, Leta mirrors early Flexport before it shifted into tech-enabled fulfillment and asset ownership. In Africa, logistics startups like Sendy, Lori (also backed by Google) and KOBO360 took an asset-heavy approach, aggregating trucks and acting as intermediaries. However, this model has struggled, leading to recent closures and pivots.Leta takes a different approach: just software. Instead of owning or aggregating assets, it partners with companies that already own fleets, helping them boost efficiency and optimize utilization. Its a playbook other global logistics tech firms like Bringg, Onfleet, and Shipsy also follow.The first generation of logistics startups in Africa did the hard work by educating the market and proving whats possible, says Joshi. By the time we entered, some were exiting or trying to redefine their business. So we knew then what the market was looking for and what they needed.