Togo-based fintech Gozem raises $30m in Series B funding round to expand its vehicle financing

Gozem, a Togo-based ride-hailing platform, has raised $30 million in a Series B funding round led by SAS Shipping Agencies Services and Al Mada Ventures. The fund, comprising $15 million in equity and $15 million in debt, will be used to enhance its vehicle financing service as it plans to launch into new markets. 

According to the startup’s founders Gregory Costamagna and Raphael Dana, a huge part of the debt raised is structured towards Gozem’s vehicle financing ends. The fintech’s ride-hailing service covers motorcycles, three-wheelers, and cars and its vehicle financing product is aimed at helping its drivers purchase vehicles. 

The company also allows workers on the platform to make food and grocery deliveries as part of its e-commerce business.

“Our main client is the professional driver. We build an ecosystem to help drivers earn more money and evolve in their lives. If they’re successful, our entire business is successful,” Costamagna noted in a conversation with TechCrunch. 

Before its $30 million Series B funding, Gozem has seen a gross revenue of $50 million across its three products which are ride-hailing, vehicle financing, and digital banking. 

Dana explained that the Series B funding round is a testament to Gozem’s impressive model, resulting in a mix of industrial and financial services investors joining its cap table. 

“It’s validation because we have investors operating on the ground in the same markets where we operate,” said Dana.

In the funding round investors, SAS Shipping Agencies Services is part of MSC Group, one of Africa’s largest container terminal operators. Also, Al Mada Ventures is the venture arm of pan-African financial services conglomerate Al Mada.

Since its launch in 2018 as a ride-hailing service in Togo, Gozem has steadily expanded across French-speaking West Africa, integrating a wide range of services as it sought to become a super-app. The company now offers ride-hailing, commerce, vehicle financing, and digital banking across Togo, Benin, Gabon, and Cameroon.

The company is also working on raising another $20 million in the coming months to support its expansion across Francophone Africa over the next two years. Dana said the company expects to triple or quadruple its growth in 2025 with the new capital.

Also Read: Nigeria’s Moove acquires Brazilian’s mobility provider Kovi, annual revenue now $275m.

Gozem’s run-up

During its $5 million Series A in 2021, Gozem launched its vehicle financing model by partnering with local banks and deploying over 1,500 vehicles. 

The company has grown from that status by partnering with international lenders and the International Finance Corporation (IFC). The startup now finances around 7,000 vehicles.

In its strategy to attract drivers to its platform, the company purchases vehicles using a mix of debt and equity, where drivers pay for these vehicles in installments. Against requesting upfront deposits, Gozem accumulates costs via little deductions from drivers’ daily earnings.

Other uber-backed fintechs such as Moove, Asaak, and MAX also offer vehicle financing products to drivers in different markets.

The company noted that its program ensures that payments remain affordable and in line with the driver’s average earnings. “We explain to all our drivers that this is a long-term journey. We finance their motorcycle, [but then they can upgrade to a [three-wheeler], then a car, eventually becoming full vehicle owners,” Costamagna said.

However, a series of mobility platforms frequently face challenges in integrating diverse services under one super app. For instance, Opay has attempted to evolve into super apps which have seen little success.  

The story seems different for Gozem. The company has devised an approach similar to Southeast Asian delivery and ride-hail giants Grab and Gojek. A number of its competitors, like BOND-backed Yassir and MNT-Halan, have also explored similar models in Africa across the Maghreb region and Egypt to some success.

Success story

Expressing its past runs, the founders said Gozem sets itself apart from other ride-hailing and vehicle financing platforms by making sure its drivers are financially secure and can access career growth opportunities.

Currently, the ride-hailing startup has nearly 10,000 registered drivers, and more than a million users have used its platform so far. Its monthly user number is in records of hundreds of thousands.

Likewise,  Gozem has seen some growth in digital ticketing, part of its commerce division. The company resells event tickets across its markets and has processed over 50,000 tickets in Togo alone for major concerts and events.

Through the acquisition of Moneex in 2023, the company also extended its operations into digital banking – Gozen Money. The service, presently in Togo, lets users make mobile payments and processes millions of dollars daily, according to the company.