Nigerian on-demand motorcycle app, Gokada, announced that it has secured Series A funding round of $5,3 million. The funding round was led by Rise Capital with participation from Adventure Capital, First MidWest Group, IC Global Partners and other unnamed Nigerian investors.
The startup has said that it will use the $5,3 million to increase the number of drivers it has on its fleet, and acquire staff in Nigeria.
“Our green Gokada motorcycles have become a regular feature of Lagos’ roads in the 14 months since our official launch. Gokada was built with the intention of becoming the future of two-wheel transport in West Africa, and we are fast becoming the go-to platform to hail a motorcycle ride in Lagos. Today’s announcement allows us to accelerate our growth projections significantly, as we continue to grow our market share and look to introduce more product features and services," said Fahim Saleh, Co-Founder and Co-CEO of Gokada.
Rise of motorcycle apps in Africa
While in North America and Asia there is a rise in scooter transportation apps, Africa is experiencing a rise in motorcycle transportation digital platforms and apps. In Uganda for example, SafeBoda has grown and even launched in Nigeria recently. While Gokada has just raised Series A funding, another Nigerian motorcycle app startup, Max.ng, has also been making some inroads as it uses motorcycles to solve last mile logistics.
According to Gokada, since it launched in 2018, it has already acquired approximately 1,000 motorcycles that are manned by trained, insured and verified drivers, kitted out with helmets which are DOT (US Department of Transportation) approved and certified. The startup reports that it has completed nearly one million rides since inception, getting riders to their destination 50% quicker than travel by car.
“Gokada’s rapid entry into Lagos’ transport market has been transformative. We have noticed that some markets like Nigeria and Indonesia, which both have large populations and inadequate road infrastructure, are more likely to be dominated by motorcycle-hailing companies rather than traditional car-hailing players, and Gokada’s relentless focus on product, customer service, and safety has enabled them to take advantage of this dynamic and produce some truly impressive growth metrics. They are reshaping the tech-enabled transport market in Lagos, and we are excited to be partnering with them as they scale," said Nazar Yasin, Founder and Managing Partner at Rise Capital.
Cover image credit: Gokada Share this via: