GoCab Secures $45M to Expand Drive-to-Own Model Following $17M ARR Milestone
Mobility fintech startup GoCab has raised $45 million to expand its groundbreaking drive-to-own vehicle finance strategy across Africa. This announcement came after the company reached $17 million in annual recurring revenue (ARR), signaling strong traction among ride-hailing and delivery drivers.
The funding round entails $15 million in equity and $30 million in debt, placing GoCab's post-money valuation at $51 million. Leading investors include E3 Capital and Janngo Capital, with participation from KawiSafi Ventures and Cur8 Capital also participating.
GoCab, introduced in 2024, allows gig workers to purchase brand-new cars with carefully planned daily installments, providing them with complete ownership in 3 years.
GoCab was founded by co-founders Azamat Sultan and Hendrick Ketchemen, both of whom have experience in investment management. The company has financed more than 1,000 vehicles with the intention of usingraised $45 million to expand its groundbreaking drive-to-own vehicle finance strategy across the additional funds to grow the number of vehicles, strengthen its technological infrastructure, and access new African markets.
GoCab's strategy is similar to that of Moove, another African transportation fintech, but it aims to be different by incorporating financial tools inspired by AI and providing financing choices that adhere to Shariah. To finance long-term growth, the business is also developing a $60 million loan facility.
The plan of the startup was aiming for profitability. As a result, it has been working to control an important part of the value chain of the company. For instance, it involves buying automobiles directly from manufacturers rather than through car dealers. This allows it to offer drivers an adequate value while saving on the associated markups.
In the industry, GoCab's funding success is seen as evidence of investor confidence in Africa's mobility-as-a-service market, which continues to attract funds notwithstanding growing desire for flexible car ownership options