Plentywaka, a mobility startup based in Lagos and Toronto has raised $1.2 million to expand its operations. This seed round was initiated after Plentywaka graduated from the Techstars Toronto accelerator last month. __S.1__
The round was led by The Xchange, a Canadian VC firm, SOSV, and Shock Ventures. Techstars Toronto also participated in the follow-up investment. __S.3__
Onyeka Akumah, the CEO of Plentywaka was quoted by TechCrunch in March as saying that her two-year old company was looking at both global and regional expansion. The company established its Canadian headquarters, but there has been little development. __S.6__ Although the company claims it has acquired 100% of Stabus, a Ghanaian mobility startup, they declined to disclose the purchase price.
Plentywaka, which is mostly a bus booking platform, actually has more than 900 vehicles, ranging from buses to vans and cars. __S.9__ Plentywaka claims that it’s now used by over 80,000 people and has completed more than half a million rides since its launch in September 2019.
Stabus began operations in Ghana, however, one month after Plentywaka was launched. __S.12__
TechCrunch’s Akumah says that he had been in contact with Kpotufe before discussions on an acquisition began. They have kept in touch on both a personal level and on a business level ever since their companies were launched two years ago. __S.15__
Isidore was intrigued at the speed with which Plentywaka was growing and asked Akumah whether his company plans to expand to Ghana. Plentywaka’s CEO, Akumah answered yes and gave a timeframe that was skewed towards the end. This meant that there was competition. However, the two thought merging would be a better option for the companies.
I have known Isidore for over two years. Because I have seen his work with Stabus, I know exactly what they do. TechCrunch spoke to Akumah, who said that it was easy for them to agree to this.
It was difficult to decide which structure should be used. __S.23__ Multinationals such as MTN, GB Foods are some of Stabus (now Plentywaka Accra)’s customers. Kpotufe is now the Country Manager for this new company.
“Plentywaka’s purchase of Stabus is an affirmation about our determination to build and grow the most popular shared mobility platform in Africa one country at time. __S.27__
The company serves travelers in 21 different cities across Nigeria. Plentywaka Ghana will go live in September 16 and the service will be available to Accra-based travelers. The next step after Accra will be to expand the service in six additional African countries in 24 months. Plentywaka has also raised its Series A in order to increase these expansion efforts, according Akumah.
We are thrilled to have made the investment in Plentywaka. Techstars believes in Africa’s future and is proud to support African entrepreneurs. __S.34__
Todd Finch, the managing partner of The Xchange and lead investor, spoke out about the seed round. He said that “The Xchange has a mission: to provide purpose-driven founders the capital, resources, and capital they need in order to realise the potential for their ideas to change the world.” __S.36__
Publiated at Mon, 23 August 2021 08:06:04 +0000