Shuttlers Secures $4M In Equity Funding to Accelerate Its Growth and Create a Safe Transit Ecosystem
Shuttlers, a scheduled mass transit company in Nigeria that uses technology to provide transportation solutions, has secured an additional $4 million in equity funding to accelerate its growth. Verod-Kepple Africa Ventures (VKAV), a prominent venture capital firm with a pan-African focus, led the funding round.
This time, it’s a return of existing investors like VestedWorld, who led Shuttlers‘ previous $1.6 million round just 18 months (about 1 and a half years) ago. SheEquity, CMC 21 & Alsa, and EchoVC are among the other participants in this round. Shuttlers now have over $5.6 million in venture capital in their vault after securing this funding round.
“We are thrilled to have VKAV, VestedWorld, SheEquity, CMC 21 & Alsa, and Echo VC as partners in our mission to transform mass transit experience around the world,” said Damilola Olokesusi, CEO and co-founder of Shuttlers.
Shuttlers The bull’s eye is focused on corporate trips and commuting, while also creating a safe transit ecosystem for commuters, particularly women. The average worker in Lagos, Africa’s most hustling and populous city, commutes to work daily or several times per week — it can be a personal car or Danfo minibuses and okadas (Motorcycles). Transit in Lagos is not easy; workers must contend with intense traffic congestion and carbon emissions.
Since transportation is not a common employee benefit in Nigeria, Shuttlers has managed to provide partner companies in Lagos and Abuja with a bus-sharing platform with mobility options for their employees since CEO Damilola Olokesusi launched the startup in 2016.
Ory Okolloh, Partner at VKAV, expressed enthusiasm in aiding Shuttlers towards its objective of providing this cost-effective, secure, and dependable transportation, and shared mobility services. “Their dedication to creating a positive impact corresponds with our mission to invest in entrepreneurs who tackle significant challenges and enterprises that benefit society,” Okolloh stated. “We are thrilled to partner with Shuttlers closely to assist them in reaching their aspirations.”
Here’s how Shuttlers works: Workers can reserve seats on buses that travel along predetermined routes provided by Shuttlers. It also has live bus monitoring, traffic-dependent route optimization, e-payments, and transportation scheduling. The company provides three payment options: organizations can pay in full for their employees, divide fares with them, or pay independently. Fees range between N850 ($1.96) and N1300 ($2.60).
“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.” said Nneka Eze, General Partner at VestedWorld.
“Since we led Shuttlers’ first external investment round in 2021, we have witnessed a 25x growth in routes and the development of proprietary technology that is world-class. We are confident in Damilola, Akachukwu, and the Shuttlers team, and the future growth and impact they will have on commuting. We look forward to supporting their journey to revolutionize the transportation industry.”
The Lagos-based startup has gained significant traction since the seed round in November 2021. It ran over 100 buses on 30 routes throughout the city at the time.
Today, Shuttlers operate over 260 buses on up to 300 routes per day in Lagos and Abuja. Shuttlers sells over 9,000 tickets per day to both individual and corporate passengers, recording a total of 3 million trips, according to its website, and has a customer base of over 80 companies, including well-known names such as Interswitch, MainOne, and Paga. Shuttlers’ services will be a force to be reckoned with over 70,000 users and counting.
