Three VC firms top March mobility funding

From the newsletter

European venture capital firm Speedinvest, with backing from Google’s Africa Investment Fund and Equator, an Africa-focused climate tech fund, pooled $5 million to invest in Leta, a Nairobi-based logistics software-as-a-service provider in March. It comes more than two years after Leta also raised a $3 million pre-seed from several local investors in November 2022.  

• The trio have previously invested in Africa’s mobility sector, which continues to attract significant funding from investors. In 2021, Speedinvest led a $23 million investment in Moove, a mobility fintech company that provides vehicle financing for ride-hailing drivers, leveraging alternative credit-scoring technology based on driver performance data.

• In the same year, Google backed SafeBoda, a motorcycle ride-hailing and delivery platform operating in Uganda and Nigeria, with a $50 million investment. Equator in March 2025 also closed a $55 million fund to support early-stage climate tech startups. Roam Electric, a Kenyan electric vehicle manufacturer, is one of Equator’s portfolio companies.  

More details

• The $5 million funding by the three VC firms formed 88% of the $5.7 million investment that mobility startups in Africa received in March. It marked a decline of 85% from the cumulative funding of $39 million that the sector received in February. 

• The seed funding by the trio aims to support Leta's plan of reducing supply chain costs across Africa, where logistics expenses can account for up to 70% of the cost of goods sold. Leta's AI-powered platform optimizes delivery routes, tracks shipments in real time, and streamlines payments, aiming to  improve efficiency and reduce costs.

• The Alibaba Foundation also made a significant contribution to Africa’s mobility funding landscape in March, handing two startups a total of $300,000 in grants. The Foundation gave Aquantuo, a Ghana-based shipping and logistics startup, a grant of $100,000.

• The Foundation,which was established in 2011, also awarded Solutech, a Kenyan logistics platform for manufacturers and distributors, another grant of $200,000. The technology startup has software that optimize delivery routes, improve fleet efficiency and simplify order management. 

• Middle East-based investment and technology firm Silver Box also fully acquired troubled Kenyan automobile firm Mobius Motors Kenya in March. The value of the transaction was not disclosed, but is viewed as an attempt by Silver Box to revive the brand which sought to make vehicles tailored for the rough African terrain. 

• At the same time, March saw Scoothero, a South African company that provides end-to-end electric mobility solutions for fleet managers and last-mile delivery drivers, raise $200,000 from Holocene, an investment management firm. Ecowaka, a Nigerian EV firm specializing in three-wheelers and battery swapping stations, also raised a similar amount from Delta40 and angel investors. 

Our take

• Leta's substantial funding highlights that tech-based logistics innovations in Africa remain attractive to investors despite recent collapses of such startups.  It shows the importance of logistics optimization in Africa, and we may see increased investment in AI-driven fleet management solutions. 

• Mobius collapsed due to funding drought and muted sales of its vehicles, which were highly priced compared to similar imported models. Silver Box's acquisition of the company signals hope of a potential revival of the firm. For that to succeed however, Silver Box must learn from Mobius’s mistakes. 

• Africa’s commercial banks remain hesitant of lending to the continent’s mobility startups, which are left to scramble for increasingly scarce grants and venture capital. However, as more of these startups prove financial viability, commercial banks should start loosening their purse strings.