Gokada Raises $5 Million In Series A Funding
Market Expertz | May 31, 2019
Lagos-based ride-hailing company Gokada has raised over $5 million for its two-wheel transit business. The funding round was led by Rise Capital along with Adventure Capital, IC Global Partners, and First Midwest Group. The company plans to use the funds to increase its workforce and rides while working on a system to deliver goods and services to its drivers. Gokada has trained and recruited over 1,000 motorcycles and their drivers on its app, which connects customers to moto-taxis. It has executed almost a million rides after being founded last year.
The startup is mostly similar to ride-hailing companies, except in the fact that it does not split fares with drivers. It charges a flat fee of 3,000 Nigerian Naira per day, which comes around to $8 to drivers to work on their platform. In the next step, the company hopes to build a commercial network for its rider community, thereby increasing its revenue. The company has been co-founded by Fahim Saleh, a Bangladesh-based entrepreneur who was the founder of Pathao, which was a transportation firm dealing in motorcycles, bicycles, and cars. Several global leaders are entering Africa’s motorcycle taxi industry, along with local startups, are raising capital to expand to new countries. Uber entered the transit industry of East Africa last year with two-wheeled vehicles. Last year, Bolt also entered the motorcycle taxi sector in Kenya.
Rwanda’s SafeBoda, a Uganda-based motorcycle ride-hail company, extended its services to Kenya in 2018. It has also raised a Series B round led by the venture arms of Indonesia-based Go-Jek and Germany-based Allianz. The company will most likely use the funds to expand its operations in East Africa and Nigeria in the coming years. One of the rivals of Gokada in the Nigerian market is the startup MAX.ng, a mobile-based passenger, and logistics delivery company. The motorcycle taxi market is increasing in size based on its affordability as compared to other modes of transit and the ease of travel that the vehicle offers through the traffic in cities.