Thirteen logistics and mobility startups raised funding in the first quarter of 2025. This matched the number of deals inked in Q1 2024, but the total amount plummeted to $44.9 million. Funding this year saw a 69% decrease from the $146 million raised in the same quarter last year.
Despite the decline in funding, the number of deals reflects continued investor appetite for vehicle financing platforms. The largest deal was in the mobility-fintech subsector in both years. In the same quarter last year, the highest deal—$100 million—came from Moove, a mobility-fintech startup that offers vehicle financing for drivers using ride-sharing platforms such as Uber. In Q1 2025, the headline funding came from Gozem, a ride-hailing platform that has expanded into vehicle financing. Gozem secured a $30 million Series B round, split evenly between equity and debt. The round was backed by SAS Shipping Agencies Services, Asia Africa Investment and Consulting, and Al Mada Ventures, a Moroccan fund spun off from the royal family-owned Al Mada Holding Group, one of Africa’s largest private investment firms.
Deals in Q1 2025 were a mix of grants, venture rounds, and growth-stage investments.
Here is a closer look at what’s driving the sector, who’s writing the cheques, and where the road leads next.
The big picture
According to The Big Deal, total African startup funding in Q1 2025 was $460 million, representing a five per cent decline from $486 million raised in Q1 2024. The $44.9 million raised by mobility and logistics startups so far in 2025 accounted for just under ten per cent of Africa’s total startup funding in the first quarter. This starkly contrasts with Q1 2024, when logistics claimed thirty-one per cent of the $460 million raised, largely due to Moove’s significant round.
Historically, the sector’s deal volume has fluctuated: In 2020, twelve deals brought in $91 million. In 2021, eighteen deals brought in $6 million. In 2022, a record thirty deals brought in $225 million. In 2023, sixteen deals raised $25 million. In 2024, thirteen deals brought in $146 million. In this year’s first quarter, 13 deals brought in $44.9 million.
The steady deal count but lower funding in 2025 suggests investors are spreading smaller bets, focusing on efficiency over blockbuster rounds.
Notable deals
The highest deal, as previously mentioned, was Gozem’s $30 million Series B. Taager, an Egyptian platform enabling online merchants with end-to-end logistics solutions, followed, raising $6.8 million in a pre-Series B round. Taager is capitalising on Egypt’s e-commerce boom by enabling small businesses to navigate complex supply chains.
In Kenya, Leta, a three-year-old AI-powered logistics startup founded by Nick Joshi, secured $5 million in a seed round from Speedinvest, Google VC, and Equator VC. Leta’s platform optimises delivery routes, tracks shipments in real time, streamlines payments, and provides shipping insights, positioning it as a leader in logistics technology.
Ghana’s Kofa, a startup focused on sustainable energy and electric vehicles, secured $4.3 million in debt from the UK-AID agency.
Rounding out the quarter, Kenya’s Mobius Motors, a vehicle manufacturer, was acquired by Middle East-based Silver Box for an undisclosed amount. The last reported exit in the sector was the acquisition of Go!TwentySix, a Nigerian valet service by DriveMe, a marketplace connecting businesses and individuals with professionally trained and vetted drivers.
Regional overview
Geographically, West Africa led the pack, with Togo, Ghana, and Nigeria collectively raising $30.3 million across three deals, driven by Gozem’s large round. East Africa, centred entirely in Kenya, saw four deals worth $5.3 million, including Leta’s seed round and Mobius Motors’ acquisition. North Africa, spanning Tunisia and Egypt, accounted for three deals totalling $7.2 million, with one being the acquisition of HatalaTee, an Egyptian online platform for buying and selling cars, by Dubizzle (value undisclosed). Southern Africa, with two deals in South Africa, raised $400,000, while Central Africa’s two deals in Cameroon also totalled $400,000.
Funding stages
Only one seed round—Leta’s $5 million—was disclosed. Growth and late-stage deals dominated, with Taager’s pre-Series B and Gozem’s Series B (equity portion) highlighting a focus on scaling startups. Debt financing played a significant role, with $19.5 million across two deals: Gozem’s $15 million and Kofa’s $4.3 million. Five venture rounds raised $800,000, and three grants, worth $400,000, went to startups in Kenya, Ghana, and South Africa from backers such as Deutsche Investitions- und Entwicklungsgesellschaft mbH, a German DFI, Alibaba Foundation, Energy and Environment Partnership Trust Fund (EEP Africa), and Shell Foundation.
The youngest startup funded was just one year old, indicating that investors in the sector are leaning towards companies with proven traction.
Investment trends
The investment trends paint a clear picture of what is in demand. Ride-hailing and mobility financing remain a favourite, with Gozem’s $30 million raise showing strong demand for app-based mobility, especially in underserved Francophone markets. AI-driven logistics is gaining momentum, as seen with Leta’s seed round. Last-mile delivery continues to attract capital, with Taager’s $6.8 million round tapping into the e-commerce surge.
Electric mobility continued to see investor interest with five deals going to startups such as Ewaka, Pixii, ScootHero, and Ecowaka, fuelled by Africa’s push for sustainability and cost-competitive electric two-wheelers. Emerging areas like EV infrastructure and battery-swapping networks, exemplified by companies such as Bboxx, are addressing critical gaps in scaling electric fleets.
Investors’ profile
The investor lineup reflects continued enthusiasm and strategic goals from local and impact-driven capital sources. Al Mada Ventures led Gozem’s funding round. This leadership is significant as Al Mada Ventures, in addition to its anchor investors, sourced its $100 million fund mainly from the African continent. This marks a contrast to Q1 2024, when the biggest deal (Moove’s $100 million round) was led by foreign investors such as Uber and Mubadala. Global venture capital firms like Speedinvest, Google VC, and Equator VC backed Leta’s raise, reflecting international interest in AI. Impact funds, such as UK-AID’s Transforming Energy Access, and grant providers, including DEG and Shell Foundation, supported green mobility. Corporate players like Shipping Agencies Services (SAS) also participated, backing Gozem’s debt and equity rounds.
Gender funding
Investors continue to snub female founders. Only two female-founded startups—Pixii Motors and Everlectric—raised capital, both secured a total of $400,000 through a venture round and a debt round, respectively. This aligns with broader trends: in March 2025, female-led ventures accounted for just two per cent of Africa’s startup funding, underscoring a persistent gap in access to capital.
A total of nineteen female-founded startups have raised money in the sector in Q1 since 2019, according to The Big Deal. However, since 2020, when the co-founder of Sendy raised $20 million in a Series B, this quarter saw the lowest number of women-founded startups and the least value raised by such startups in Q1.
Looking ahead
For founders, the message is clear: focus on profitability and scalability to stand out in a cautious market. Leveraging AI, automation, and asset-light business models can help differentiate startups in crowded segments. The sector may attract more funding if more startups develop infrastructure for electric vehicles or expand their offerings to include financing, as seen with Gozem and Moove.
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