Kenyan ride-hailing company Little has sold a 10 percent stake worth Sh 300 Million to a fintech firm from India.
According to Reuters, the deal was “unplanned and that Little would still raise another $100 million” for expansion across Africa.
The investment has boosted the Sh1 billion investment the company has received from its parent technology company Craft Silicon Limited and other shareholders since it was established. Furthermore, the Sh300 million will give Little a fairer advantage in competing with other taxi apps in the market such as Uber and Taxify.
“What is happening is that the transport and auto industry which has been quite dormant, from the disruption point of view, is now ripe for disruption. A lot of new technology is getting into vehicles,” Kamal Budhabhatti, Craft Silicon founder and chairman stated.
“There are not many players who are integrating payments into the in-car technology. So the latest funding will go to building products in that line. I will also be travelling to the US soon to get some education on how autonomous vehicle technology works.”
Mr Budhabhatti also said the firm will partner with some vehicle manufacturers to add payments on car dashboards.
Last month, Little Ride launched in Uganda and Craft Silicon plans to set up the taxi-hailing app in Rwanda in June and eventually in Nigeria. In addition, Little will be expanding to Nakuru and Eldoret towns. Currently, the taxi app is accessible in Mombasa, Nairobi, and Kisumu.
Safaricom, the largest telecommunication company in Kenya, is Little’s marketing and technology partner although it does not own a stake in the taxi firm.
Source: Kenyan Wallstreet
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