The primary on-demand ride-hailing platform in Central Africa, CanGo, has reportedly closed down operations on account of the lack to lift enough funds.
Disrupt Africa reported that it acquired a whiff of this transfer by way of a mail despatched from the startup’s co-founders to an investor. The report claimed that the startup’s present funding power was not sufficient to convey them to a collection A which received’t prove as an enormous danger any investor could be prepared to take.
“The co-founders determined that the funds it has [sic] dedicated to the SAFE as of now, US$180,000, will not be enough to convey us [sic] to a wholesome Sequence A with out an ‘irresponsible danger the traders prepared to place that cash in.’”
In response to the report, an alternate transfer would have been bootstrapping a pivot, however the co-founders have been discouraged taking a cue from SafeMotos’ outing in Rwanda, when the ride-hailing platform started in 2014. It added that the very best shot is to halt operations whereas there may be nonetheless sufficient cash within the financial institution to pay staff the enterprise is owing.
Barrett Nash, Cango’s CEO, in an interview with Techpoint final yr, expressed optimism that new investments have been within the tunnel after the $1.1 million raised earlier within the yr.
“Up to now, we’ve raised $1.eight million from traders and we’re trying actively for extra traders that convey larger strategic worth contained in the African continent, particularly Congo.”
Because the case is, with anticipated investments not forthcoming, we suspect Nash’s excessive prospects from CanGo’s first-mover benefit in Kinshasa, Democratic Republic of Congo (DRC) and its super-app plans might have hit a brick wall.
As at press time, Nash had not confirmed this report. This text shall be up to date as new particulars emerge.