Bykea banks $13m in series B funding as its transportation biz starts to recover

Prosus Ventures, the VC arm of global consumer internet group Prosus, led the series B round, which pushed the startup’s total amount raised to US$22 million. Other backers include existing investors Middle East Venture Partners and Sarmayacar.

Since its establishment in 2016, Bykea has expanded to become an all-in-one app for transportation, delivery, and payment services, which it operates through its partnerships with banks. It currently works with over 30,000 drivers in the country, competing with companies such as Uber and the US firm’s subsidiary, Careem.

The investment comes as Bykea’s business continues to recover amid the Covid-19 crisis. While the company kept its team together through the pandemic, it had to cut several other expenses, including its reliance on Google Maps.

Bykea CEO Muneeb Maayr said the company developed its own navigation system with the help of its driver-partners during the lockdown. With the transition, the firm was able to save 90% of the US$60,000 monthly fee that Google charged for using its offering.

The chief exec also shared that with Bykea’s operations having largely recovered since August, it’s now looking to focus more on its financial services business.