BuuPass raises $1.3M to scale mobility sector digitization in Africa • robotechcompany.com
The general public transport sector in Kenya is basically conventional and a majority of operators, particularly these in street journey, nonetheless require their shoppers to bodily guide tickets at their workplaces even when making advance journey plans. Others do not need provisions for seat reservation.
Seeking to bridge the hole, reserving platforms are rising within the house, together with BuuPass, which is actively trying to promote order within the highly-fragmented sector by serving to operators to digitize their operations.
The corporate, which was based in Kenya seven years in the past, plans to first scale in Kenya and Uganda, earlier than exploring different markets backed by a $1.3 million pre-seed funding it has raised from the Founders Manufacturing unit Africa, FrontEnd Ventures, Adaverse, Gullit, Five35, Renew Capital, Changecom, XA Community, Ajim Capital, Artha Ventures, Daba Finance, Google Black Founders Fund, and a number of other angel buyers.
“The funding will allow us to put money into development actions, growing our market share in East Africa, with a give attention to Kenya and Uganda. We’ll rent a staff particularly on the expansion facet, and know-how consultants in order that we are able to construct programs for scale as a result of our plan is to grow to be a pan-African infrastructure for lengthy distance transportation,” mentioned co-CEO, Sonia Kabra, who co-founded BuuPass with Wycliffe Omondi in 2016.
BuuPass, a B2B2C full-stack market, gives operators with a bus administration system (BMS) for managing their operations, stock and gross sales. It then connects them to its market, the place passengers search, evaluate and guide their tickets utilizing totally different channels, together with web sites, apps, and USSD codes.
The BMS features a point-of-sale resolution to seize transactions, and to supply entry to a parcel administration module.
BuuPass says operators utilizing its BMS are in a position to handle their fleets and companies higher, achieve entry to information they’ll use to attract insights from, and cut back money leakages, whereas growing their gross sales from on-line bookings.
The corporate says it processes about 12,000 transactions per day throughout its reserving channels, and has recorded over 9 million ticket gross sales up to now. Its Gross Merchandise Worth was barely over $30 million in 2022.
It helps a complete fleet dimension of 1,200 automobiles from over 25 bus firms, together with one of many oldest, Straightforward Coach. Vacationers can even guide flight and prepare tickets, particularly bringing comfort to vacationers utilizing the nation’s railway community for intercity journey.
In Kenya, BuuPass, in partnership with Safaricom, the parent-company of cell cash service M-Pesa, clinched the contract to facilitate prepare bookings in 2017.
“Partnering with Safaricom enabled us to land the Kenya Railways (operators of the nationwide prepare grid) deal and validated our resolution and capability to construct options for prime worth transactions. It additionally enabled us to construct belief out there, and helped us take into consideration scale such that now we have developed options able to dealing with hundreds of thousands of transactions and offering a seamless expertise for the top person. It’s been an ideal validation for us to show our credibility out there,” mentioned Kabra.
Sonia and Omondi met in 2013 on the Earlham School in Richmond, Indiana, US, and their curiosity in entrepreneurship and pursuit to supply options for the transport sector in rising markets, noticed them co-found the faculty’s first entrepreneurship membership, and BuuPass. In 2016, they gained the $1 million Hult Prize, a grant backed by Invoice Clinton that helped them launch BuuPass (often known as Magic Bus Ticketing then) in Kenya as a B2C platform.
Nevertheless, they shortly realized that the concept was not possible because the operations of most bus firms have been overwhelmingly guide, therefore the necessity to prioritize digitization.
“We went deeper into the market, and noticed that there was a much bigger downside with the bus operators; they have been principally utilizing pen and paper to do ticketing, they’d no transparency into their gross sales. There have been plenty of money leakages, they usually weren’t in a position to digitize and entry the customers who’re coming on-line day-after-day. And so, we constructed a bus administration system for them,” mentioned Kabra.
