Nigeria-based mobility startup Treepz has acquired Ugabus, a Ugandan bus company that aggregates inter-city bus operators following a recent $1.5 million raise that acted as an extension to a previous seed round.
Uganda’s Ugabus is Treepz’s second acquisition of the year after acquiring Ghanaian mobility startup, Stabus. According to Treepz, Ugabus, which will be rebranded Treepz Uganda on December 1, presently has 70% of the country’s bus operators on its platform, with over 50,000 clients using the service to travel between Ugandan cities.
“We’ll be able to service most of the major cities in Uganda, but the good thing about East Africa is they have very seamless borders between the countries, so it’s easy to move from Uganda to Rwanda, Uganda to Tanzania, Tanzania to Burundi, and so forth.Onyeka Akumah, CEO and co-founder of Treepz
According to Treepz CEO, The plan is to extend into Tanzania and Burundi first and later Ethiopia. “So the same thing we were doing with Ghana, across Ghana to Togo and Benin from Nigeria for the West African region. So next year, we will consolidate on our positions on East Africa and West Africa and start collapsing into on in sub-Saharan Africa.”, he explained.
The seed extension, which came from new investors including Japan-based Uncovered Fund, Dubai-based Blanford Capital and Jonomi Capital, and Egypt-based Jedar Capital, adds onto an August raise of $1.3 million, funding Treepz used to purchase Stabus, a Ghanian bus company, to expand across the continent. Treepz is closing the seed round at $2.8 million.
The acquisition, which will see Treepz fully acquire all of Ugabus’ operations and staff, marks Treepz’s first entry into the East African market. Ugabus, which will be renamed Treepz Uganda on December 1, currently has 70% of all the country’s bus operators on its platform, which includes around 50,000 customers that use the service to travel between cities in Uganda, according to Treepz.