Shuttlers, a Nigerian shared mobility startup has raised $1.6 million in seed funding from several investors to expand its operations and service within Nigeria and across other African countries. The company is poised to replicate its success here in other markets with new funds after years of bootstrapping.
The investment round was led by Chicago and Africa-focused investment firm VestedWorld. Other investors that participated were Payment giant Interswitch, Rising Tide Africa, CcHub Syndicate, Launch Africa, EchoVC, Consonance Investment, ShEquity, Sakore, CMC 21 & Alsa, Five35, and Nikky Taurus.
Shuttlers was co-founded by Damilola Olokesusi and Busola Majekodunmi in 2016, after being frustrated by the stress of commuting. The startup was formally launched in 2017 with a goal to resolve the inefficient transportation system in Lagos.
Using the ride-sharing business model, Shuttlers provides corporate organizations and businesses with cost-effective mobility options for their various employees.
Shuttlers CEO, Damilola Olokesusi
Damilola Olokesusi once said “Our mission is to transform the way people commute around the world by building a global partner network and connecting communities of shuttlers like we are presently doing in Lagos, Nigeria.”
Providing cost-effective transport solutions
The business operates using 3 models, a B2B2C model where companies pay a part of the transport fares of their employees, a B2B model where the business clients pay the full transport fare of employees, and B2C where employees and individuals pay for their trips.
Some of its other features include live bus tracking and optimal routing based on traffic and digital payments. Commuters are also able to schedule rides in advance, this is however only available to subscribers.
So far, the company claims to have over 10,000 users across its mobile app and website, with more than 100 branded and unbranded buses plying several routes in Lagos. In total, the company says it has recorded over 2 million trips since inception, selling over 6,000 bus tickets daily.
With these achievements under its belt, it is no surprise the company has attracted interest from foreign investors. The CEO claims to not have been looking for investors; however, there is a spotlight on the shared mobility industry because of the success of Techstars-backed startup, Treepz which recently expanded operations to Ghana and companies like SWVL.
The company has commenced operations in Abuja and is looking to expand to other cities within and outside Nigeria. These funds will be employed into financing such expansion.
“We just made the right decision for the company at this time so we can get ready for the opportunity that happens after. Now we are ready to take over the African market, starting with Nigeria and West African markets in the next couple of months,” the CEO said.