Mergers & acquisitions thrive in African EV space

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Exits are a vital sign of a thriving startup ecosystem, yet they remain a rare occurrence in Africa. Venture capitalists are keen to see exits to know where to put their money. MobilityXAfrica, a data platform, sheds light on recent mergers & acquisitions in the African mobility space. But data transparency on deal amounts is scanty.

• Africa's mobility startups are coming up fast. In early 2024, they secured more funding than fintech, raising $218 million. Companies like Moove and Planet42 are driving this surge in investment, transforming transportation across the continent.

• While other sectors like fintech are seeing fewer mergers and acquisitions, the mobility space is showing promising signs of consolidation, despite deal sizes being smaller than those typically seen in fintech.

More details

• Mergers and acquisitions within the African mobility sector show a diverse geographic spread. West Africa emerges as a key region with four notable acquisitions, followed by East Africa with three. South Africa has one and none in North Africa. 

• The majority of these acquisitions involve companies offering digital solutions within the mobility industry, highlighting a trend towards technological advancement and increased digitalisation in the sector.

• In East Africa, Kenyan automotive company Mobius Motors was acquired in mid-2023, with the acquiring company remaining undisclosed. The key acquisition was the need for capital after the company risked facing liquidation.

• Also in Kenya, BuuPass, a digital platform for booking bus and train tickets, acquired Quickbus in 2024. The move aimed to expand BuuPass's market share and operational reach, particularly in Nigeria, where Quickbus had established a significant presence.

• South Africa's Lula, a mobility-as-a-service platform, acquired the South African branch of UK-based shuttle company Zeelo in the fourth quarter of 2023. This acquisition allowed Lula to consolidate corporate shuttle services within major South African cities, enhancing operational efficiency through digital integration.

• Nigerian mobility startup Plentywaka expanded its footprint into West Africa by acquiring Ghana-based Stabus.

• Treepz, another Nigerian mobility platform, expanded into East Africa with its early 2024 acquisition of Ugandan transit startup Ugibus. Treepz's goal is to provide accessible and streamlined bus travel options across the African continent.

• Gozem, a multi-service platform, enhanced its financial service offerings by acquiring Benin-based fintech company Moneex in the final quarter of 2023. This acquisition integrated Moneex's expertise in mobile money and financial solutions into Gozem's platform.

• DriveMe, a Nigerian fleet management company, broadened its service portfolio in January 2023 by acquiring parking service provider Go!TwentySix. This acquisition allowed DriveMe to address the growing need for efficient parking solutions in Nigeria's urban centres.

• Pan-African automotive technology company Autochek made three strategic acquisitions. In early 2023, Autochek acquired CoinAfrique Auto Sales, enabling expansion into Francophone markets and broadening its vehicle financing solutions. In May 2022, Autochek acquired Kifal Auto, a Moroccan platform connecting car buyers with sellers, financing, and insurance services, thereby expanding Autochek's presence in North Africa. Autochek further enhanced its digital marketplace in June 2023 by acquiring AutoTager, an Egyptian platform specialising in vehicle inspection and maintenance.

• Lastly, Asaak, a Ugandan fintech company specialising in vehicle financing for mobility workers, expanded its operations beyond Africa by acquiring FlexClub Mexico in the third quarter of 2023.

Our take

• As the sector matures and demonstrates its potential for growth and impact, we expect to see increased investment from both local and international investors.

• The trend towards consolidation is likely to continue, with larger players acquiring smaller startups and strategic partnerships forming across the ecosystem.

• Expect further innovation and diversification of services as companies explore new technologies and business models to address the evolving needs of African consumers. These include subscription services, on-demand transportation, and micro-mobility solutions. The growing use of mobile money will also play a significant role in the sector's development. These factors will likely lead to more mergers and acquisitions.