While the European mobility sector matures into a battle of margins, a new frontier is tightening its grip on the “drive-to-own” model in emerging markets. London-headquartered GoCab has today announced a $45m funding round ($15m equity, $30m debt) to scale its vehicle-financing platform across West Africa, the Middle East, and Latin America.
The raise comes at a pivotal moment for the sector. As global giants like Uber and Glovo expand their footprints in Africa, the bottleneck remains a lack of vehicle credit for the drivers themselves. GoCab is positioning itself as the financial plumbing for this gig economy, targeting a gap left by traditional banks that view independent couriers as high-risk.
The Model: Asset-heavy, data-driven
Founded in 2024 by former investment bankers Azamat Sultan and Hendrick Ketchemen, GoCab’s strategy bypasses the traditional leasing model. Instead of renting vehicles to drivers indefinitely, the company employs a three-year “drive-to-own” structure.
- Supply Chain: GoCab leverages bulk purchasing power to source vehicles directly from China at low cost.
- Repayment: Payments are automatically deducted from drivers’ digital wallets on a daily basis (excluding weekends).
- Maintenance: The “all-in” fee includes insurance and maintenance, removing the shock of lumpy capital expenditures for the driver.
The company claims this model allows drivers to earn roughly four times the local minimum wage. Once the three-year term concludes, the driver assumes full ownership of the asset — a transition that GoCab argues provides long-term stability in markets like Côte d’Ivoire and Senegal, where vehicle ownership is a significant barrier to entry.
The Competitive Landscape: The Moove Elephant
GoCab isn’t the only player in this space. It faces stiff competition from Moove, the Uber-backed Nigerian heavyweight that has raised over $250m and is currently valued at approximately $2bn.
However, GoCab is carving out a niche by focusing on Francophone Africa and other emerging territories where Moove’s presence is lighter. By securing its own debt facilities early, GoCab is attempting to prove it can run a leaner operation with better unit economics than its venture-backed predecessors.
The Financials: Debt and Shariah Compliance
The $45m round is structured to fuel an asset-heavy business. The $15m equity portion, co-led by E3 Capital and Janngo Capital with participation from KawiSafi Ventures and Cur8 Capital, provides the operational runway, while the $30m in debt commitments (from Cur8 Capital and others) funds the purchase of the fleet.
Notably, GoCab is structuring a $60m Shariah-compliant debt facility. This move is strategic; it opens up specific capital pools in the Middle East and Northern Africa, where the company is looking to expand.
Current Performance Metrics:
- Annual Recurring Revenue (ARR): $17m (after 18 months).
- Target Revenue: $100m by 2027.
- Headcount: 120 staff across five countries.
- Fleet Target: 10,000 active assets within 24 months.
The Green Pivot
A significant portion of the new capital is earmarked for electrification. Currently, electric vehicles (EVs) make up 10% of GoCab’s fleet, with a target to reach 50% by the end of 2026. In markets where fuel prices are volatile, the switch to EVs isn’t just an ESG play — it’s a move to protect the net margins of the drivers and, by extension, the reliability of GoCab’s daily repayments.
The Launch Base Africa Take
GoCab’s pedigree — led by founders with structured finance backgrounds — suggests a focus on “boring” but essential metrics: default rates, recovery values, and debt-to-equity ratios. In a high-interest-rate environment, the success of this London-based startup will depend less on “changing lives” and more on its ability to manage a massive, depreciating physical fleet across geographically fragmented markets. If they hit their $100m ARR target, they won’t just be a “purpose-led” startup; they’ll be a formidable fintech infrastructure player.