Egypt’s Buseet Gets Seed Round Extension From Saudi-Based Vision Ventures
It appears to be raining dollar bills for Egyptian transport-tech startups as the sector has witnessed a flurry of investment activity in the past few weeks and yet again, another transport-tech startup in Egypt has gotten in on the act.
This time around, it is Buseet; a bus-booking platform, that has roped in an undisclosed amount of funding from Saudi-based Vision Ventures. It would be recalled that the startup raised a seed round in September from 500 Startups, Cairo Angels, and some other angel investors. Following from that, the latest investment appears to be an extension of that seed round.
Buseet was established last year by a trio of Founders including Amr El-Sawy, Khaled Moawad, and Mohamed Abdel Aziz. The platform provides a means through which commuters can book modern and convenient minibuses at rates that are significantly lower than regular ride-hailing options while serving up luxury and comfort that is not afforded by public transport options.
The startup’s bus-hailing services are currently available on some fixed routes in parts of Cairo and Alexandria. After its initial launch, the startup’s services were only available through its web-based platform but improvements have since been made and Buseet now boasts mobile apps for both Android and iOS.
Speaking with regards to the development, Kais Al-Essa, Founding Partner at Vision Ventures, enthused that Buseet is unique in that it offers a simple and no fuss solution to a worrying problem by affording commuters an easy, clean, comfortable and cost-effective option which trumps public transport and personalized solutions. He also expressed confidence in the ability of the startup to assist in solving the transportation conundrum in cities with dense population.
The timing of this latest investment could be thought to be quite interesting as it appears to be coinciding with a number of recent developments which have seen Uber and Careem launch bus services of their own in Cairo.
Buseet’s latest investment is also coming at a time when another bus-hailing startup, Swvl, has announced raising “tens of millions” in its Series-B at a valuation that is believed to be on the threshold of USD 100 Mn, with expansion into Southeast Asia also on the cards for the startup. But that appears to be no cause for worry for Buseet’s latest investors who seem to be unfazed by these parallel developments and only poised to grab a significant market share.
Al-Essa also revealed his awareness of the Uber and Careem situation but is taking it in good stride. He referred to the development as being more than anything else, a reflection of the size of the market and the opportunities on offer. He also expressed convictions in the startup’s ability to deliver when he stated that the efficiency of Buseet’s operations compared to its competitors puts in better stead.
While it remains to be known exactly how much funding has been raised by Buseet so far, it is hard to look past the fact that it is probably a long way off from the amount of financial power its competitors have been able to summon in recent times.
And even though the startup may have to reload its financial arsenal pretty soon, it sure looks like Egypt’s bus-hailing segment is about to get a hell of a lot more competitive. If anything, that bodes well for the customers of the service.
This development was first covered in a publication by MENAbytes.
Image Courtesy: MENAbytes
