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Why We Invested In BuuPass

As technology continues to advance, more and more individuals are seeking ways to save time and money in their daily lives. This trend is leading to the digitalization of various industries, including transportation. BuuPass is one of the game changers at the forefront of this movement in Africa, providing a seamless and convenient experience for booking travel tickets. 

The platform offers a range of travel options (bus, train, flight) by integrating with multiple operators, allowing users to easily search, compare prices, and book their tickets in advance. This eliminates the stress and unpredictability that often comes with the traditional booking process. And operators can get real-time visibility of their operations, track their vehicles, manage their schedules and routes, and automate their ticketing and billing processes. 

Winning on Hybrid Model

The startup, currently operating in Kenya and Uganda, has sold over 9 million tickets through its platform since 2016, when it started, serving over 2.5 million customers. Considering the African market's unique characteristics in terms of smartphone usage and internet availability, users can access the service both online and offline. 

Partnering with the biggest mobile operator in Kenya, Safaricom, is strategic for the mobility business in providing flexible offline payment options for the majority of the users at the grassroot and access to over 50 million active users of M-Pesa mobile solution. Hybrid models that allow startups to tap into large offline markets while providing digital services are a winning strategy for businesses targeting the African market. Buupass is well-positioned to take advantage of this trend.

Market Opportunity

The domestic travel market in Sub-Saharan Africa is approximately $100 billion, with 1.1 billion trips taken each year. In Kenya, the annual spend on domestic travel is $1.3 billion, spread across 83 million trips. Additionally, the global market for online bus ticketing services was valued at $2.22 billion in 2021 and is projected to grow at a CAGR of 22.93% from 2023 to 2027, reaching $7.67 billion by 2027. Business expansions that will see mergers and acquisitions taking place within the African continent and internationally are some of the expected trends in this industry. 

We at Ajim Capital are excited to be working with Buupass at this early stage in realizing their dream for the African transport industry, creating job opportunities, and improving living standards.

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