Plentywaka Raises $1.2M Seed Funding & Acquires Stabus

Plentywaka Secures $1.2 Million Seed Funding and Acquires Stabus

Mobility startup Plentywaka, operating from Lagos and Toronto, has successfully closed a $1.2 million seed round. This funding will be utilized to broaden the company’s operational reach following its recent completion of the Techstars Toronto accelerator program.

Investment Details

The investment round was spearheaded by The Xchange, a Canadian-based venture capital firm. SOSV and Shock Ventures also participated in the round, with a follow-on investment coming from Techstars Toronto.

Furthermore, Nigerian investment firms Argentil Capital Partners and ODBA & Co Ventures contributed to the seed funding. Angel investors from Canada, various African nations, and the United States also took part.

Expansion Strategy and Acquisition

Previously, in March, CEO Onyeka Akumah indicated the company’s ambitions for both regional and international growth. While global expansion has seen limited progress, with the establishment of a Canadian headquarters, regional growth is now being actively pursued through acquisition.

Plentywaka has fully acquired Ghanaian mobility startup Stabus, though the financial details of the acquisition remain undisclosed.

Plentywaka’s Service Offering

Plentywaka functions primarily as a bus-booking platform. However, the company’s fleet encompasses over 900 vehicles, including cars, vans, and buses.

The company facilitates both intrastate travel, through its Dailywaka service, and interstate travel, offered via Travelwaka, all accessible through a mobile application.

Since its launch in September 2019, Plentywaka reports having amassed over 80,000 users and completed approximately half a million rides.

Stabus and its Impact

Stabus began operations in Ghana shortly after Plentywaka’s initial launch. Its co-founder and CEO, Isidore Kpotufe, stated that the startup has transported over 100,000 passengers within Accra, Ghana’s capital city, utilizing a diverse range of vehicles.

The Acquisition Process

Akumah shared that he and Kpotufe maintained regular communication, both professionally and personally, since the inception of their respective companies two years ago.

In April, Kpotufe inquired about Plentywaka’s potential expansion into Ghana, given the company’s rapid growth. Akumah confirmed plans for expansion towards the end of the year.

Recognizing the potential for competition, the two CEOs determined that a merger would be the most beneficial outcome for both organizations.

“I’ve known Isidore for nearly two years and have closely observed his achievements with Stabus, understanding their operational model thoroughly. Therefore, the decision to proceed with this acquisition was straightforward,” Akumah explained.

Integration and Future Plans

After considering options, the decision was made to rebrand the 12,000-user Stabus business as Plentywaka Ghana.

Stabus’ existing clientele, including major corporations like MTN and GB Foods, will transition to the Plentywaka Ghana service. Kpotufe will assume the role of country manager for the newly integrated business.

“The acquisition of Stabus underscores our dedication to expanding and establishing the largest shared mobility startup in Africa, one country at a time. Isidore is a highly capable entrepreneur, and we are enthusiastic about his leadership and team’s execution of our plans for the Ghanaian market,” Akumah stated.

Looking Ahead

Currently, Plentywaka serves travelers across 21 cities in Nigeria. Service in Accra will commence on September 16th with the launch of Plentywaka Ghana.

The company intends to replicate this expansion model in six additional African countries within the next 24 months. Akumah also indicated that Plentywaka is preparing to raise a Series A funding round to support these expansion initiatives.

Industry Perspectives

Sunil Sharma, managing director of Techstars, expressed excitement about the investment, stating, “Techstars strongly believes in the future of Africa and is a proud supporter of African entrepreneurs. Onyeka’s status as a two-time Techstars founder further strengthens our relationship.”

Todd Finch, managing partner at The Xchange, added, “The Xchange is committed to empowering purpose-driven founders with the resources they need to realize their innovative ideas. Onyeka’s proven success, his team’s dedication, and Plentywaka’s impressive growth made this an investment opportunity we were eager to pursue.”