Egypt’s SWVL was recently designated as a unicorn, but one crucial African market may be out of reach for the time being. This is because Zeelo, a London-based mobility platform that launched in South Africa in 2019 and quickly recruited over 18,000 passengers, has added to its fundraising arsenal with a fresh $12 million investment.
The funding, which was led by ETF Partners and included InMotion Ventures and a number of angel investors, including Neil Smith, the founder of Transit Systems, will be used to accelerate the company’s expansion in the United States, the United Kingdom, Europe, and Africa. In addition, the company intends to invest in its SaaS technology and continue to roll out completely electric bus shuttle operations with zero-emission buses and coaches.
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“Outside urban centres, the vast majority of people need a car to access work and education. Amongst our shift-worker customers, 30% of candidates don’t turn up to the job interview in the first place because they can’t get there. Zeelo is playing an important role in improving social mobility and decarbonising transportation. In the past 18 months, employers have realised the importance of it too. Now it’s time to bring this to the masses” said Sam Ryan, Co-Founder & CEO.
Over 20,000 Vehicles At Its Disposal In South Africa
Zeelo, which began operations in the United Kingdom in 2016 and moved to South Africa in 2018, has partnered with over 20,000 vehicles to provide commuting, event, and private transportation services across the country.
The company claims to have transported over 18 000 local passengers since its introduction in the country, and it plans to expand swiftly in the country by forming agreements with large employers who want to provide sustainable transportation options for their employees.
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In South Africa, Zeelo began as ‘The Rugga Bus,’ a service that transported Cell C Sharks supporters to and from Jonsson Kings Park on match days. Andrew Robarts and James Champion, two Durban residents, ran the Rugga Bus until word of the concept reached London, when Zeelo co-founders Sam Ryan and Barney Williams were interested.
The teams reached an agreement, and ‘The Rugga Bus’ was renamed Zeelo SA. Zeelo now caters to big sporting events, concerts, and festivals all throughout South Africa. The company has ties to the Super Rugby franchises in South Africa, as well as South African cricket and a number of festivals.
“Zeelo’s focus on public transport deserts directly tackles the issues of car-dependency, transport emissions and social mobility. The growth of the business during the pandemic has been extraordinary and we are delighted to continue to support the business. The world needs need more and affordable and sustainable mass transit — Zeelo is defining the category” added Patrick Sheehan, Managing Partner at ETF Partners, which had previously invested $5.8m million in Zeelo.
By assisting enterprises in the logistics and manufacturing industries, as well as post-pandemic hybrid workplaces and schools, Zeelo claims it has grown its revenue by over 600 percent in the last 18 months, attaining regional profitability. It allows residents in car-dependent communities to use sustainable transportation to get to work and school.
How The Zeelo Model Works
In order to boost staff recruitment and minimize CO2 emissions from commuting, Zeelo collaborates with companies, schools, and fleet operators to create inexpensive and convenient bus programs that provide a viable alternative to driving a car. When compared to a traditional bus operator, Zeelo’s mobile apps, client workspace planning tools, route-optimisation software, and asset-light vehicle model reduce expenses by up to 42 percent and CO2 emissions by 78 percent.
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Zeelo has worked with a number of event companies and local car providers in South Africa, including Jaguar Land Rover, The Sharks, South African Cricket, and Big Concerts, to supply the vehicles required to transport Zeelo passengers securely to their destination.
Sam Ryan and Barney Williams, serial mobility entrepreneurs, founded Zeelo in 2014. The company, which is headquartered in London, operates in the United Kingdom, the United States, and South Africa, serving over 70 customers with over 75 staff and transporting almost 100,000 riders per month.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer