Shuttlers secures $4M to drive its shared-mobility offering in Nigeria
Nigerian shared-mobility startup, Shuttlers has raised $4 million in equity funding to expand its offering across the country. The funding round was led by Verod-Kepple.
Founded in 2016 by Damilola Olokesusi to address inefficient transportation costs in Nigeria’s commercial capital, Lagos, Shuttlers provides individual and corporate passengers with better mobility options.
To deepen its shared-mobility offering across Nigeria, Shuttlers has raised $4 million in equity funding in a round led by Verod-Kepple, a leading venture capital firm that recently raised a $43 million pan-African fund, with follow-on investment from Vested World, Echo VC, CMC 21 & Alsa, and SheEquity.
"This additional funding will allow us to build the infrastructure we need to power mass transit and expand our reach to more communities in Nigeria," Damilola Olokesusi, co-founder and CEO of Shuttlers said in a statement seen by Benjamindada.com. "We are proud of the loyal customer base we've built in Lagos and we are rapidly expanding our services to other cities in Nigeria. With this new funding, more people will benefit from our safe, reliable, and affordable shared mobility service."
As of November 2021 when the mobility company raised a $1.6 million seed fund, it had over 100 buses on 30 routes across Lagos. Currently, Shuttlers has about 260 buses driving through 300 routes across Lagos and Abuja every day; the company sells over 9,000 tickets daily to individual and corporate passengers — and recorded 3 million trips since its launch.
With a clientele of over 80 Nigeria-based companies including Interswitch, MainOne and Paga, it enables employees of these companies to come on board through three payment plans where employers pay full fares or split the fares with their employees. Over 10,000 employees have used Shuttlers via this offering, according to the company's website.
Meanwhile, individuals who are unaffiliated with any partner company pay fares ranging between ₦850 (~$1.96) and ₦1300 (~$2.60), by themselves. So far, Shuttlers says it has served over 70,000 passengers.
"We believe that Shuttlers has the potential to transform the way people move around the world. VestedWorld has invested in nearly 30 companies in East and West Africa and we are proud to be a continued partner in Shuttlers' journey," Nneka Eze, General Partner at VestedWorld, added.
The Nigerian shared mobility company states that it has reduced its commuters' carbon footprint by 85%. After its seed fundraises in 2021, CEO Damilola said expressed confidence "that our smart mobility solutions can solve some of these urban mobility challenges sustainably and also reduce carbon emission".
Verod-Kepple says Shuttlers' commitment to reducing carbon emissions in the environment is one of the reasons that it is backing the company. "We are excited to support Shuttlers in their mission to provide safe, reliable, and affordable transportation to Nigerians," according to Ory Okolloh, Managing Partner at VKav. "Their commitment to creating impact aligns with our vision for investing in companies that impact society positively. We look forward to working closely with Shuttlers to help them achieve their goals."