Plentywaka raises seed funding of over $1.2 million for expansion

Plentywaka raises seed funding of over $1.2 million for expansion - Startup Lagos

In a seed funding round that was led by Canadian VC firm, The XChange, and saw the participation of SOSV and Shock Ventures, Techstars Toronto, Nigerian firms, Argentil Capital Partners, and ODBA & Co Ventures, Plentywaka, Nigeria’s mobility startup has raised over $1.2 million. This successful funding round comes at the heels of their participation in the Techstars Toronto accelerator program last month.

Based in Lagos and Toronto, the startup has acquired over 80,000 users since it started operations in 2019, with over 500,000 completed rides. The startup functions primarily as a bus-hailing platform, with over 900 vehicles in its operations. It facilitates intra- and inter-state travel for its users, with these rides booked via their mobile platform. Their services enable travel for users across 21 cities in Nigeria, with ease of access to booking via their online platform, and comfort in travel.

In the wake of the funding success, the CEO of the startup, Onyeka Akumah stated that the company has plans of expansion into Ghana and other African countries. With this in view, the company has acquired Stabus, which has completed over 100,000 trips within Accra with different vehicles. Having launched about three months after Plentywaka entered the market, Stabus faced difficulties in matching up to the challenging market situation in Ghana especially with the adverse effects of the pandemic.

Plentywaka hopes to revitalize its Ghana operations through this acquisition and utilize this to spread and branch out towards other African countries, as well as globally. In lieu of retaining the Stabus brand, the mobility startup has rebranded the Ghana branch of operations to Plentywaka Ghana, with Isidore Kpotufe, the former CEO of the acquired Stabus, taking over as Country Director. Its Ghana service will be going live by September 16 with the new branding and positioning. Plentywaka has remained silent on the price of acquisition. As Akumah is quoted as saying,

Plentywaka’s acquisition of Stabus is a firm statement about our commitment to grow and build the largest shared mobility startup in Africa, one country at a time. Isidore is a brilliant entrepreneur and we are excited about having him and his team execute our plans for the Ghanaian market.

With this growth to Ghana, the company is looking at further expansion to six other African countries within the space of two years, and is eyeing a successful Series A round to consolidate these plans. Todd Finch, Managing Partner at The Xchange, the lead investor in the seed round, says,

The Xchange is on a mission to fuel purpose-driven founders with the capital and resources they need to realize the world-changing potential of their ideas. Given Onyeka’s proven track record, his team’s undeniable thirst for making an impact, and Plentywaka’s impressive growth, we knew this was an opportunity we wanted to invest in.

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