February attracts $39+ million mobility funding

From the newsletter

African mobility companies have raised over $39 million so far in 2025. Beneficiaries include Togo-based digital service provider Gozem, Egyptian social e-commerce platform Taager, Egyptian car marketplace Hatla2ee, ride-hailing firm Swvl, South African EV company Everlectric, and Tunisian e-scooter manufacturer Pixii Motors.

• While East Africa has historically dominated mobility sector funding, 2025 has seen a shift towards North, West, and Southern Africa. Does this suggest a decline in East African mobility investments?

• Service-based companies have secured the largest share of funding, outpacing manufacturing firms, despite Africa's ongoing efforts to strengthen its local supply chain.

More details

• West African digital service provider Gozem has secured $30 million, split evenly between equity and debt. Founded in Togo, Gozem operates across Francophone West and Central Africa, offering ride-hailing, vehicle financing, and e-commerce services. The funds will be used to expand its vehicle financing service and enter new markets.

• Taager, a social e-commerce platform, has secured $6.75 million. Founded in Egypt and now headquartered in Saudi Arabia, Taager enables individuals—particularly young people, women, and those on low incomes—to start online businesses. It provides a curated product catalogue, embedded financing, logistics, and AI-driven business optimisation tools.

• Swvl, a ride-hailing firm originally from Egypt, has secured an additional $2 million in private investment, building on a previous $4.7 million raised in November 2024. The company is aggressively expanding into the United States, complementing its strong presence in the MENA region with enterprise and government transit solutions.

• Tunisian e-scooter manufacturer Pixii Motors has received $200,000 from Madica, a VC fund focused on pre-seed startups. Based in Tunisia, Pixii Motors provides intelligent electric mobility solutions tailored for urban travel and last-mile deliveries. The funds will accelerate product development and market expansion.

• South African Everlectric, which leases electric commercial vehicles, has secured debt funding from the Vumela Fund. It partners with companies like Woolworths to help transition logistics fleets to EVs. The funding will be used to expand its fleet and address key adoption barriers in South Africa.

• Egyptian online car marketplace Hatla2ee has been acquired by UAE-based Dubizzle Group, with the deal aimed at transforming Egypt’s automotive sector. Founded in Egypt, Hatla2ee serves over 2 million monthly visitors. The acquisition will integrate Dubizzle’s technology to improve its platform and expand its reach.

• East Africa, once dominant in mobility funding, has seen a decline in investor focus in 2025. In February 2023, it secured $1.5 million out of $6.46 million in total funding (23%). In February 2024, its share rose to $24.2 million out of $135.75 million (18%). Despite an absolute increase, proportional funding has dropped, as North, West, and Southern Africa attract more capital.

• Funding trends indicate that investors enter the African mobility sector later in the year, with February traditionally receiving lower capital injections. In February 2023, only $6.46 million was raised, while February 2024 saw $135 million—a staggering 20-fold increase. This suggests that mobility startups should align their fundraising efforts with investor cycles, targeting later months for major rounds.

Our take

• Investor appetite for service-based mobility businesses is growing due to their scalability and profitability. Unlike manufacturing, which demands heavy capital expenditure and long-term commitments, service companies—such as ride-hailing, financing, and e-commerce platforms—offer faster growth and quicker returns.

• Manufacturers like Pixii Motors and Everlectric received a fraction of the funding compared to service companies. The capital-intensive nature of vehicle production remains a major deterrent.

• To attract early-year funding, startups must establish stronger traction metrics, secure early commitments, and leverage government incentives to de-risk early investments.