African Mobility Startups See Steady Deals But Funding Drops 69% in Q1
TLDR
- Thirteen mobility and logistics startups raised funding in Q1 2025, matching the number of deals from the same quarter last year
- The biggest deal came from Gozem, a Francophone Africa-based ride-hailing and vehicle financing platform, which secured $30 million
- Despite the overall decline, investor appetite for mobility-fintech and logistics platforms remains strong
Thirteen mobility and logistics startups raised funding in Q1 2025, matching the number of deals from the same quarter last year but bringing in only $44.9 million—a sharp 69% drop from $146 million in Q1 2024.
The biggest deal came from Gozem, a Francophone Africa-based ride-hailing and vehicle financing platform, which secured $30 million in a Series B round backed by SAS Shipping Agencies Services, Asia Africa Investment and Consulting, and Al Mada Ventures.
Despite the overall decline, investor appetite for mobility-fintech and logistics platforms remains strong. Other notable deals included Egypt’s Taager ($6.8M), Kenya’s Leta ($5M), and Ghana’s Kofa ($4.3M debt for EVs).
Regionally, West Africa led with $30.3 million, driven by Gozem’s round. East Africa saw four deals totaling $5.3 million. North Africa raised $7.2 million, while Southern and Central Africa each brought in $400,000.
Debt financing played a key role, accounting for $19.5 million, while only one disclosed seed round—Leta—suggests a tilt toward mature startups. Female-founded startups continued to struggle, securing less than 1% of total sector funding.
The trend points to investors spreading smaller bets while looking for traction and scalability in an increasingly selective funding environment.
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Key Takeaways
The mobility and logistics sector in Africa is adjusting to tighter capital conditions, with investors favoring business models that show both scalability and capital efficiency. Rather than chasing growth at all costs, VCs and DFIs are now backing startups focused on profitability, automation, and infrastructure. Three clear trends emerged in Q1 2025: Mobility-Fintech Convergence: Startups like Gozem and Moove are embedding financial services such as vehicle financing and lending into their platforms, enabling them to monetize beyond ride-hailing while targeting underbanked gig workers. AI-Powered Logistics: Leta’s seed round reflects a growing demand for logistics tech that can optimize delivery networks, reduce operational costs, and offer real-time visibility—particularly relevant as Africa’s e-commerce markets expand. Electric Vehicle Ecosystems: Kofa and others are building infrastructure for electric mobility, with battery swapping and low-cost electric two-wheelers attracting impact investors and grants. The transition is being driven less by climate mandates and more by economics—electric fleets are cheaper to run in the long term.
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