Gokada, a Nigerian bike hailing start-up, which started its operations a year ago, announced that it has successfully secured a $5.3 million Series A capital raise.
Leading the Series A investment round was Rise Capital, a global investment firm that focuses on making expansion-stage investments in Internet businesses in Emerging Markets. The company worked in conjunction with Adventure Capital IC Global Partners, and Illinois-based First MidWest Group.
As part of the capital raise agreement, Nigerian entrepreneur and Co-Founder of Jobberman, Ayodeji Adewunmi will be joining Gokada as a Co-CEO.
Gokada plans to use the fund to increase its fleet and ride volume, and at the same time, develop a network that offers goods and services to its drivers. The fund will also be used to increase daily rides by 1000 percent, as well as ensure the acquisition of local talents.
The co-founder of Gokada, Fahim Saleh said “we’re going to start a Gokada club in each of the cities with a restaurant where drivers can relax, and we’ll experiment with a Gokada shop, where drivers can get things they need on a regular basis, such as plantains, yams and rice”.
Following its establishment early last year, Gokada has already acquired approximately 1,000 motorcycles that are manned by trained, insured and verified drivers, kitted out with helmets which are DOT (US Department of Transportation) approved and certified.
The company has also completed nearly one million rides since inception, getting riders to their destination 50 percent quicker than travel by car.
Gokada currently ranks as the most popular motorcycle-hailing app in Nigeria with combined app downloads of close to 200,000.
Customers of Gokada, which was founded in 2018 by Nigerian entrepreneurs, can order a motorbike ride through the company’s website, or by using the company’s geo-location -based smartphone Gokada mobile app.