GoCab raises $45 million in seed equity and debt led by Janngo and E3

GoCab has raised $45 million, split between $15 million in equity and $30 million in debt, Techpoint Africa reported on 3 February. The equity was the company's first round, a seed led by E3 Capital and Janngo Capital, with KawiSafi Ventures and Cur8 Capital also providing funding.

How GoCab works

The startup helps ride-hailing and delivery drivers get brand-new vehicles that they can fully own within three years, paying daily. It plans to add buy-now-pay-later services and is testing health insurance through a partner. Azamat Sultan and Hendrick Ketchemen are the co-founders.

Where it operates

GoCab began in Abidjan, Côte d'Ivoire, and also operates in Senegal, Chile and, most recently, Morocco. Nigeria and Ghana are the next targets. The company says it has an in-house team of more than 60 mechanics. Sultan said: "Maintenance is not a drain on the P&L for us. It's quite the opposite."

Traction and plans

GoCab reports $17 million in annual recurring revenue since launch, more than 1,000 vehicles financed and over 5,000 drivers on its waitlist. The funds will go towards putting thousands of vehicles in drivers' hands, working towards 10,000 active assets and $100 million in recurring revenue, expanding across Africa and pursuing a regulatory licence. Separately, it is seeking $60 million in Shariah-compliant debt, of which $30 million has been raised so far from Cur8 Capital and Cumberland, with talks continuing with another lender for the final $30 million.

At a glance

• Company: GoCab
• Raised: $45 million ($15 million equity, $30 million debt)
• Round: Seed plus debt
• Lead investors: E3 Capital, Janngo Capital
• Other backers: KawiSafi Ventures, Cur8 Capital, Cumberland
• Markets: Côte d'Ivoire, Senegal, Chile, Morocco
• Key number: More than 1,000 vehicles financed