Plentywaka, a bus hailing mobility startup with its base in Lagos and headquarter in Toronto has raised $1.2 million to scale and expand its operation. This seed round was initiated after Plentywaka graduated from the Techstars Toronto Accelerator Program in the previous month.
The investment round was led by Canadian-based VC firm The Xchange. Other investors in this round include SOSV, Shock Ventures, Techstars Toronto, Argentil Capital Partners, and ODBA & Co Ventures.
Plentywaka’s Co-Founder & CEO, Onyeka Akumah said that the raise is coming at a time when the startup has been able to firm up its offerings going by its experience from over 17 Nigerian cities and is eager to launch into other African countries to solve similar mobility problems.
“We have plans to build the largest shared-mobility company in AFRICA. We have decided to firstly expand to other countries in West Africa and then other Africa regions. With this raise, we will be focusing on aggressive marketing to get more people to experience the seamless quality we offer in 21 states in both Nigeria and Ghana,” he said
Launched in 2019 by Onyeka Akumah, Johnny Ena, John Shaibu and Afolabi Oluseyi, Plentywaka connects users with buses via app and even with inactive operations for 5 months in 2020 due to the pandemic, Plentywaka has 965 vehicles registered on its platform and has helped 84,605 users commute more than 487,416 times in less than 2 years.
Although the company claims it has acquired 100% of Stabus, a Ghanian mobility startup, they declined to disclose the purchase price.
Stabus commenced operations in Ghana a month after Plentywaka’s launch. The startup has since moved over 100,000 people within the country’s capital city, Accra using different vehicles. Some of Stabus’ (now Plentywaka Ghana) customers include multinationals like MTN and GB Foods. Travellers in Accra will begin to use the service when Plentywaka Ghana goes live on September 16.
The new funding will be used to deepen its expansion in Ghana and the next plan after Accra is to replicate the expansion in six other African countries within 24 months.
According to him, Onyeka Akumah said “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.”
PlentyWaka is now a Toronto-headquartered shared mobility company. Onyeka stated that the location had always been part of the plan as it is related to regulatory concerns.
“So Toronto is our headquarters as far as investor relations and business development is concerned. Majorly because most of our investors are from Canada, Asia and the US,” he said.