Artha India Ventures backs BuuPass, Kenya-based mobility marketplace.
- ByStartupStory | March 29, 2023
Kenyan mobility marketplace BuuPass has secured $1.3 million in a pre-seed funding round led by Founders Factory Africa, with participation from Google Black Founders Fund and other investors. The B2B2C platform plans to use the funds to expand its operations in East African markets, with a focus on Kenya and Uganda, as it seeks to increase its market share. This marks the first institutional funding round for BuuPass, which had previously received $1 million in grants from the Hult Prize, a global student competition backed by former US President Bill Clinton.
Sonia Kabra, Co-founder, and Co-CEO of BuuPass, has stated that her personal experience of long queues and wait times for travel in larger cities inspired her to co-found the company. BuuPass aims to build digital infrastructure for transport in Africa, similar to online travel-booking platforms like redBus and IRCTC in India. The $1.30 million pre-seed round led by Founders Factory Africa will help BuuPass expand its reach and build a comprehensive continent-wide network of interconnected transport in Kenya and Uganda, making travel more seamless and accessible. Kabra expresses her excitement about scaling the product with the help of investors and creating hassle-free travel experiences for all.
BuuPass, established in 2016, uses a B2B2C strategy to provide fleet owners with a comprehensive bus management system (BMS) for handling their operations, inventory, and sales. The BMS includes a point-of-sale solution for booking capturing and offers access to a parcel management module. Through its marketplace, BuuPass allows customers to search, compare, and book tickets across multiple channels, including websites, apps, and USSD codes. According to Anirudh A Damani, Director of Artha India Ventures, the African ecosystem is generating several one-of-a-kind investment opportunities that will disrupt the market across industries. BuuPass is among the potential category leaders that show immense promise in building digital rails for Africa’s intercity transport infrastructure.
BuuPass boasts of more than 1,200 registered vehicles from over 25 bus companies on its platform. Its partnership with Safaricom (or M-Pesa) has made the company the sole technology provider for online railway ticket booking in Kenya. With a GMV of $30 million in CY 2022, BuuPass processes around 12,000 transactions daily. Co-Founder & Co-CEO, Wyclife Omondi, said, “Over 9 million travelers have saved time and money by buying their tickets from the comfort of their homes. Additionally, our bus operators have seen a significant decrease in cash leakages and increased revenue from online bookings.” BuuPass can customize technology for most businesses, provide on-demand support, and offer USSD functionality.
Artha India Ventures (AIV) is a family office founded in 2012 with an investment portfolio covering renewables, leasing, and institutional funds. The company manages over ₹800+ crores in third-party capital and has invested in more than 80 high-performing startups in India, the USA, Israel, and Africa. Some of its notable investments include OYO, Purplle, LeverageEdu, Tala, IconBuild, Rapido, Coutloot, Chai Break, Karza Technologies, Stay Vista, Mobilewalla, and Exotel. Additionally, AIV operates a 10+ MW renewable energy portfolio and leases over 100 cars, showcasing its commitment to sustainable growth and business development. The AIV-promoted Artha Select Fund has been recognized as a leading fund in Bain & Company’s / IVCA’s 2023 Report on the Indian Venture Capital ecosystem.
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