"Africa\u2019s Mobility Startups Dethrone FinTechs, Scale New Heights"

" Africa\u2019s Mobility Startups Dethrone FinTechs, Scale New Heights \r\n\r\n After toppling Fintechs in fundraising for the first time, prospects are bright for many African Mobility startups, with their unique innovations offering insights and value to investors. \r\n\r\n Conrad Onyango, bird story agency \r\n\r\nAfrica\u2019s mobility startups are having a moment.\r\n\r\nFor the first time, these small businesses in transport and logistics have dethroned Fintechs in attracting the most investor funding on the continent.\r\n\r\nIn another historic first, mobility startups are beginning to explore cross-border rental trips as they look to capitalize on growing intra-Africa tourism fuelled by the removal of visa requirements by some countries and the adoption of multi-country visa regimes by others.\r\n\r\nIn the first half of 2024, mobility startups raised US$218 million compared to Fintech\u2019s US$186 million, According to an Africa: The Big Deal report, which put overall funding to startups at US$800 million.\r\n\r\nAccording to Treepz founder and Chief Executive Officer, Onyeka Akumah, funding increases are coming on the heels of increasing interest in the innovative solutions to mobility problems coming from the continent.\r\n\r\n\u201cInvestors are starting to realise that mobility issues are not just confined to Africa; they are global. New solutions are constantly emerging to address these challenges, which is why funding for mobility startups remains crucial,\u201d Akumah said in an interview with bird.\r\n\r\nAnother half year report by intelpoint also affirms Mobility and Logistics sector outperformed Financial Services in funding,\u00a0although the report\u2019s overall US$580 million in startup funding for the period is a lower estimate than that suggested by Africa: The Big Deal.\r\n\r\nThe two reports both highlight that Nigerian mobility startup, Moove's US$110 million was the largest funding round of the period \u2013 some 64% of the industry's total, according to intelpoint.\r\n\r\nOther mobility startups that have raised funding over the first six months include Planet42\u00a0(US$16 million)\u00a0Ampersand (US$12 million)\u00a0and Roam (US$24 million).\r\n\r\nAnother show of investor confidence in the mobility industry manifested recently when Kenyan-made car maker, Mobius, announced it would be shutting down operations due to financial difficulties only to reverse the decision a week later, announcing it had received a buyout offer.\r\n\r\n \r\n\r\n\u201cOn August 14, Mobius accepted a bid for the acquisition of 100% of its shares by an undisclosed buyer. Both parties are looking to close the transaction within 30 days,\u201d said\u00a0 Mobius Motors Kenya Director Nicolas Guibert in a notice.\r\n\r\nFounded in 2011, Mobius designs, manufactures and sells vehicles built specifically for the African market.\r\n\r\n\u201cUnlike the fintech industry, where solutions can often be applied broadly, mobility requires a more nuanced approach and this has attracted good attention to solving the problems,\u201d said Onyeka.\r\n\r\nOnyeka told bird that mobility startups are beginning to understand that they need to be very fluid with solutions offering that must be adaptable and tailored to the specific needs of each environment.\r\n\r\n\u201cWhen your solution is flexible and can be customized to fit different contexts, it becomes easier to secure funding because you can address specific problems rather than offering a generalised solution,\u201d he said.\r\n\r\nAkumah pointed to mobility startups in the rental space, like Treepz, as a case in point.\r\n\r\nIn August Treepz, became the first corporate mobility firm on the continent to complete a cross-border rental trip between two countries \u2013 Nigeria and the Benin Republic.\r\n\r\nIn a historic journey covering 1400 kilometers between August 7 and August 11, 2024, the mobility startup successfully transported 96 passengers from Lagos, Nigeria to Cotonou, Benin Republic and back.\r\n\r\nThe company\u2019s Chief Executive said the historic trip showcased its capability to meet the growing demand for reliable transportation solutions \u2013 especially for tourists and corporate clients \u2013 across Africa.\r\n\r\n\u201cThis achievement opens the door for us to innovate further, creating new pathways for cross-border travel that were previously unavailable,\u201d said Treepz Chief Operations Officer, Johnny Enagwalor.\r\n\r\nThe company said it has partnered with a number of tour operators in five African countries to offer a range of tailored services depending on the number of people travelling, from standard rentals to luxury options like Range Rovers, Rolls Royces, and G-Wagons, depending on the client\u2019s needs and preferences.\r\n\r\nTeepz also focuses on events, including the NyegeNyege Festival (Kenya and Uganda), the TuskerLite Rwenzori Marathon (Uganda), and the Sabinus Campus Tour (Nigeria).\r\n\r\nOver the last five years, the corporate mobility firm said it has completed transportation of over 5 million passengers in Nigeria, Ghana, Kenya and Uganda, where it has operations.\r\n\r\nTreepz is the only mobility startup in the African corporates space. In July, African tech news platform TechCabal reported that corporate-focused mobility company, LULA, acquired a South African subsidiary of US-based staff bus-sharing startup Zeelo, for an undisclosed amount.\r\n\r\nSince its launch in South Africa in 2019, Zeelo had raised\u00a0US$33 million and completed more than 2 million rides annually in South Africa.\r\n\r\n\u201cThis is a significant milestone for us, allowing our tech-enabled, ride-sharing platform to expand and provide even more safe, reliable and efficient transport solutions for business,\u201d LULA said on X.\r\n\r\nLULA with just over 1,000 driving partners will leverage Zeelo\u2019s bigger footprint of over 18,000 riders to expand across the country.\r\n\r\n bird story agency "

"Africa\u2019s Mobility Startups Dethrone FinTechs, Scale New Heights"

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