Mobility startups raise $27.8m funding in June

From the newsletter 

Investment raised by mobility startups in Africa reached $27.8 million in June, according to data from The Big Deal Africa. This is an increase from the $26.5 million funding that the sector raised in May, and marks the second consecutive increase in monthly funding figures. It brings the total haul for the first half of 2025 to $110.9 million.

• The funding raised in the first half of 2025 is a decline of 49% compared to the total funding of $218.3 million that the sector’s startups raised in the same period in 2024. This signals a deterioration in the continent’s funding landscape. 

• June’s funding was concentrated in East Africa and Southern Africa, with South African firms contributing 56.4% and Kenyan startups contributing 41.3%. The remainder was raised by an Egyptian startup. 

More details

• Peach Cars, a Kenyan used car marketplace, raised $11 million in June, the highest of any other mobility startup. The funding will be used to further digitise and formalise vehicle transactions across East Africa. It comes two years after the startup also raised $5 million in June 2023 from investors to help it scale. 

• South African startup MyNextCar (MNC), a key fleet partner for ride-hailing giant Bolt in the country, has raised $10 million in its first funding round. The funding, which was the second highest raised in June, will fuel the expansion of Bolt’s low-cost service in South Africa. The capital injection will be used to add 1,500 new vehicles to MNC’s fleet. 

• FutureRent, another South African startup, raised $5.7 million in June in its first funding round. It is a pioneering car subscription company in the country, and the capital injection marks a major step forward in the firm’s plan to reinvent mobility through flexible, finance-free vehicle access. The deal brings over 450 new vehicles to FutureRent’s growing fleet, the company’s most significant expansion to date. 

• During the month, Egypt-based logistics startup Nowlun raised $600,000, bringing its total funding to date to $2.3 million. Founded in 2021, Nowlun is an online freight forwarding platform allowing customers to compare different services and rates that match their needs. The funds will accelerate the development of the firm’s Smart Logistics Assistant and expand operations in Egypt and Saudi Arabia. 

• Electric Transits Africa (ETA), which operates in Kenya, raised $500,000 in funding during the month. The startup seeks to establish the EV charging infrastructure across Sub-Saharan Africa. ETA aims to simultaneously deploy a fleet of EVs for tourism transfers. The tourism industry, being a leading sector in Kenya and many other countries in the region, is uniquely positioned – both financially and in willingness – to drive the e-mobility transition. 

• While we have analysed the funding raised by startups in the broad mobility sector, Africa is seeing a wave of funding for electric mobility startups, especially those focused on electric two- and three-wheelers, which are cost-effective and suitable for African cities. 

Our take

• Amid the slowdown in funding down over the past year, startups must prioritise business models with clear revenue paths. VCs are cautious and now prefer ventures that can scale sustainably over those chasing pure growth.

• Investors and governments should support the broader EV ecosystem — charging infrastructure, local assembly, spare parts, and energy storage. The ETA model of using EVs for tourism plus investing in charging networks is a great example of sector-specific adoption. More such sectoral pilots are needed.

• African mobility startups are still heavily dependent on foreign capital. Governments and DFIs should seed more local funds focused on transport innovation, especially to support early-stage ventures that might not yet attract big-ticket VC funding.