Plentywaka Secures Techstars Backing, Eyes Canadian Expansion

Plentywaka Joins Techstars Toronto Accelerator

Plentywaka, a Nigerian platform for booking bus travel, has announced its acceptance into the Techstars Toronto accelerator program.

The company will be one of ten startups participating in the 2021 cohort, and will receive funding to facilitate its plans for global growth.

Company Overview

Founded by Onyeka Akumah, Johnny Ena, John Shaibu, and Afolabi Oluseyi, the Lagos-based company functions on an “Uber-for-buses” model. It connects commuters with available bus services through a dedicated mobile application.

Since its launch in September 2019, Plentywaka has experienced significant user adoption. Initially, the platform facilitated an average of six passenger trips daily. Within six months, this figure rose to approximately 1,500 daily trips, with over 100,000 total rides completed.

Adapting to the Pandemic

The onset of the pandemic and subsequent lockdowns in March 2020 presented challenges. Plentywaka responded by shifting its focus to the transportation of essential goods, particularly food items, throughout Lagos. A logistics service was also introduced.

As restrictions eased and commuting resumed, the company operated at 60% capacity while maintaining the same operational costs. Despite steady growth, the need for external investment became apparent. In August, Plentywaka secured $300,000 in pre-seed funding from EMFATO, Microtraction, and Niche Capital.

Refocusing on Core Services

With the new capital secured, Plentywaka has concentrated on its primary service: passenger transportation via buses. The logistics division and a car service offering have since been discontinued.

According to Akumah, this strategic focus has yielded positive results. The company has expanded its intrastate services to include Abuja, Nigeria’s capital city, and has now transported around 300,000 passengers. Plans are underway to launch an interstate service connecting various cities across Nigeria.

Aggregating Bus Travel Options

This new interstate service will involve partnerships with major bus travel companies, which collectively operate over 2,000 buses on more than 100 routes nationwide. Plentywaka will function as an aggregator, allowing commuters to compare fares and book travel on a single platform.

Ena, co-founder and president of Plentywaka, explained that the company aims to address the lack of data transparency in Nigerian interstate travel. “We want to be the first company to solve this,” he stated.

Global Expansion Plans

In addition to these developments, Plentywaka is pursuing expansion into Africa and North America. The initial step in this global strategy will be a launch in a Canadian city, likely Toronto, before the end of Q4 2021.

Sunil Sharma, managing director of Techstars Toronto, confirmed this plan. He emphasized that Techstars is investing in Plentywaka because it addresses a significant problem in Nigeria, one that mirrors urban transportation issues in cities worldwide.

Addressing Urban Transportation Challenges

“Western cities have established transportation systems, but challenges remain, even in a city like Toronto,” Sharma noted. “We believe Plentywaka’s technology and approach to improving daily commutes can be successfully applied in Western cities, just as it is in Africa.”

Plentywaka intends to first launch its intracity service, engaging with relevant stakeholders, before introducing the intercity model. Sharma believes that many Canadian cities lack adequate bus services, resulting in a fragmented intercity transit infrastructure. He anticipates Plentywaka will provide a much-needed alternative.

“Many cities and towns here lack bus connectivity, leading to a broken intercity transit infrastructure. Plentywaka’s arrival will offer an immediate improvement to the current situation and will appeal to people as a supplement to existing transportation options,” he added.

A Familiar Relationship with Techstars

Akumah’s prior experience with Techstars played a role in Plentywaka’s acceptance into the accelerator. He previously co-founded Farmcrowdy, a Nigerian digital agriculture platform, in 2016 and participated in the Techstars Atlanta program four years ago. He currently serves as CEO of both companies.

The founder stated that the existing relationship with Techstars influenced the decision to expand into Canada rather than neighboring African countries.

“If the opportunity in Toronto were comparable to those in Ghana or South Africa, we would certainly be exploring those options. However, the strong support system from Techstars, Sunil, and regulators in Toronto, even before establishing a physical presence, makes expanding to Canada particularly appealing,” Akumah explained.

Nigerian and African startups rarely expand into Canada. Plentywaka is poised to do so, and will be seeking a seed round of investment to support these expansion plans and further enhance its technology.

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