Gozem, a ride-hailing and vehicle financing platform, has secured $30 million in a Series B funding round to bolster its operations across Francophone Africa. Founded in 2018, the company initially launched as a ride-hailing service in Togo. Today, it operates in Togo, Benin, Gabon, and Cameroon, offering an array of services that include commerce, digital banking, and event ticketing. The recent funding round was led by SAS Shipping Agencies Services and Al Mada Ventures, comprising $15 million in equity and $15 million in debt.
The company's rapid growth is evident in its user base, which boasts nearly 10,000 registered drivers and over a million users on its platform. Gozem's ride-hailing service accommodates motorcycles, three-wheelers, and cars, providing a versatile transportation solution. Furthermore, Gozem's vehicle financing product assists drivers in purchasing vehicles, having financed approximately 7,000 vehicles to date.
“We explain to all our drivers that this is a long-term journey,” said Costamagna.
Gozem's innovative approach to vehicle financing is reminiscent of Southeast Asian giants Grab and Gojek. The model ensures affordability for drivers by implementing small deductions from their daily earnings. This strategy not only aids drivers in acquiring motorcycles but also facilitates upgrades to three-wheelers and eventually cars, promoting full vehicle ownership.
“We finance their motorcycle, [but then they can upgrade to a [three-wheeler], then a car, eventually becoming full vehicle owners,” Costamagna elaborated.
Gozem's digital banking service, Gozem Money, enables users to conduct mobile payments seamlessly. The service processes millions of dollars daily, underscoring its significance within the financial landscape of the region. Collaborations with international lenders and the International Finance Corporation (IFC) further reinforce Gozem's commitment to expanding its vehicle financing product.
Moreover, the company's digital ticketing service has gained substantial traction, with over 50,000 tickets processed in Togo alone for major concerts and events. This indicates a growing interest in digital solutions for entertainment and cultural activities within the region.
The secured funding will propel Gozem towards its ambitious growth targets. The company anticipates tripling or even quadrupling its growth by 2025, leveraging the new capital to enhance its service offerings and expand its market presence. Currently, Gozem's run-rate gross merchandise value across its three product verticals stands at $50 million.
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