Gozem Raises $30M for Vehicle Financing & Digital Banking in Francophone Africa

Gozem's Expansion and Funding

Launched in 2018 as a ride-hailing service within Togo, Gozem has experienced consistent growth throughout French-speaking West Africa. The company has evolved to offer a comprehensive suite of services, aiming to establish itself as a leading super app.

Currently, Gozem provides ride-hailing, commerce solutions, vehicle financing options, and digital banking services across Togo, Benin, Gabon, and Cameroon.

Securing $30 Million in Series B Funding

In an effort to broaden its ecosystem, Gozem has successfully secured $30 million in a Series B funding round. This funding comprises $15 million in equity and an additional $15 million in debt.

SAS Shipping Agencies Services and Al Mada Ventures spearheaded the investment. The acquired capital will be strategically allocated to enhance Gozem’s vehicle financing service and facilitate expansion into new markets.

Differentiating Factors and Driver Focus

Founders Gregory Costamagna and Raphael Dana emphasize Gozem’s unique approach. They distinguish the platform from competitors by prioritizing the financial stability and career advancement of its drivers.

Gozem believes that empowering drivers is central to its overall success. A thriving driver base directly contributes to the company’s growth.

Service Offerings and Platform Features

Gozem’s ride-hailing service encompasses a variety of vehicle types, including motorcycles, three-wheelers, and cars. Furthermore, the company’s vehicle financing product is designed to assist drivers in vehicle acquisition.

The platform also enables workers to engage in food and grocery delivery services, expanding its reach within the e-commerce sector.

Vehicle Financing Model and Growth

When Gozem’s $5 million Series A funding was announced in 2021, the vehicle financing model was newly piloted. Over 1,500 vehicles were deployed that year through partnerships with local banks.

Since then, Gozem has forged collaborations with international lenders and the International Finance Corporation (IFC). Currently, the company finances approximately 7,000 vehicles.

Attracting and Supporting Drivers

To incentivize drivers to join the platform, Gozem acquires vehicles utilizing a combination of debt and equity. Drivers then have the opportunity to purchase these vehicles through installment payments.

Instead of requiring substantial upfront deposits, Gozem recovers costs by making small deductions from drivers’ daily earnings. Similar vehicle financing products are offered by companies like Uber-backed Moove, Asaak, and MAX in various markets.

Affordability and Long-Term Progression

Gozem ensures that payment plans remain manageable in relation to a driver’s average income. The company prioritizes affordability for its drivers.

“We view this as a long-term partnership with our drivers,” Costamagna explained. “We support their progression from motorcycles to three-wheelers, and ultimately to car ownership.”

Future Plans and Expansion

A substantial portion of the newly raised debt is earmarked for Gozem’s vehicle financing initiatives. The company is also actively seeking an additional $20 million in funding.

This additional capital will support Gozem’s expansion strategy across Francophone Africa over the next two years, solidifying its position as a key player in the region.

The Super-App Strategy

Numerous fintech and mobility companies have attempted to consolidate various services into a single super app, but this approach hasn't consistently yielded positive results. For instance, in sub-Saharan Africa, payment applications striving to become super apps, such as Opay – which received backing from SoftBank – have experienced limited success.

However, Gozem is demonstrating promising progress through a strategy mirroring that of prominent Southeast Asian delivery and ride-hailing companies like Grab and Gojek. Several competitors, including Yassir (supported by BOND) and MNT-Halan, have also investigated comparable models within Africa, specifically in the Maghreb region and Egypt, with some degree of achievement.

The company currently boasts almost 10,000 registered drivers. Over a million users have utilized its platform to date. Monthly active users are reported to be in the hundreds of thousands.

Beyond its primary offerings, Gozem has observed growth in the area of digital ticketing, which falls under its commerce division. The company facilitates the resale of event tickets across its operational markets and reports having processed over 50,000 tickets in Togo alone for significant concerts and events.

In 2023, Gozem expanded into digital banking – branded as Gozem Money – through the acquisition of Moneex. This service, presently available in Togo, enables users to conduct mobile payments and reportedly processes millions of dollars in transactions each day.

Financial Performance and Growth

Prior to its recent Series B funding, Gozem achieved a run-rate gross merchandise value of $50 million across its three core product areas. Dana anticipates that the company’s growth will triple or even quadruple in 2025, fueled by the new capital injection.

He emphasized that the Series B funding round serves as validation of Gozem’s business model. This is evidenced by the participation of both industrial and financial services investors in its cap table. SAS Shipping Agencies Services is affiliated with MSC Group, a leading container terminal operator in Africa, while Al Mada Ventures represents the venture capital arm of Pan-African financial services conglomerate Al Mada.

“This investment provides validation because we now have investors actively operating within the same markets as ourselves,” Dana stated.

• Key takeaway: Gozem's success hinges on a localized approach to the super-app model.
• Expansion Focus: The new funding will primarily support vehicle financing and digital banking initiatives.