VTC Heetch has just raised $4.42 million (€4 million) from the AfricInvest fund. The start-up co-founder, Teddy Pellerin, details his objectives for the continent.
Many publications do not cover the latest business news about European or African markets. Born2Invest has made a selection of these important stories a key part of its mission.
Our companion app helps you keep up to date on the latest news about finance, markets, cannabis, fintech and Africa.
VTC Heetch aims to become a leader in the startup field
The Heetch company has big goals and wants to become the leader in the field.
“We have the ambition to become the leader in VTC markets in French-speaking Africa,” says Teddy Pellerin, co-founder of the French start-up that connects passengers with drivers through a mobile application.
The VTC Heetch company was created in 2013 and has managed to raise $4.42 million (€4 million) from the AfricInvest investment fund. Based in Tunis, this leading private equity firm in Africa has an estimated asset portfolio of $1.49 billion (€1.5 billion).
“This is good news because we will be able to count on the expertise of a player who knows this part of the world,” says Mr. Pellerin.
Pellerin is delighted that this is the fourth fundraising campaign in two years since Heetch switched to the chauffeur-driven transport car (VTC) market, following its legal difficulties related to its previous urban private transport activity.
Company plans for a broader international reach
With the money, Heetch intends to continue its international expansion, which began in 2018 with the launch of the platform in Casablanca, Morocco.
In addition to the well-established markets in France and Belgium, the company has also been present in Algeria and Cameroon since last summer.
“We aim to have a presence in about ten countries by next year,” says Teddy Pellerin, who cites Tunisia and Senegal as the next targeted markets.
But conquering these African markets requires overcoming many structural and legal obstacles.
In May, Teddy Pellerin announced the arrival of his company in Côte d’Ivoire, after having raised $37.64 million (€34 million) from investors convinced by the start-up’s development projects on the continent.
The city of Abidjan represents an ideal ecosystem with many traffic jams, few public transport solutions, a young population and a legal vacuum favorable to VTC companies.
VTC Heetch reviews its strategy for Africa
Motorcycle taxis are an obvious choice for the start-up. This mode of transport, already offered elsewhere on the continent by the giants Uber and Taxify, is popular in East Africa, but relatively undeveloped in the West.
Heetch recruited a handful of drivers and trained them to comply with traffic regulations. But after a few days of testing, the Ivorian authorities ban moto-taxies in Abidjan, because the number of illegal two-wheeled drivers increased.
This reversal is pushing the platform to review its African strategy. There is no longer any question of setting up immediately in Senegal as initially planned: this market seems complicated to address given the absence of legislation on the status of VTCs, local competition with the informal market and the hostility of professional taxis.
“We decided to prioritize other countries. Instead, we went to Algeria because there is already a VTC status recognized and to Cameroon because motorcycles are legal there,” says Teddy Pellerin.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in LeMonde, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [++ A2 Hosting Affiliates Review]
Something's brewing in the Right to Repair space. Lawmakers are increasingly law-making. DIY fixer upperers are increasingly fixer uppering. And,...
Why the Carbon Credit Market Is Not Working
The Carbon Brief analysis focused on 34 companies that alone used 38 million tons of carbon dioxide over the period...
Recrowd, Real Estate Lending Platform, Finally Gets European Authorization
Recrowd adopts a distinct approach for less sophisticated investors, limiting their investments to under €1,000 or 5% of their net...
Why the Amounts Invested in Belgian Fintech Companies Decreased
In 2023, the Belgian fintech sector has not witnessed any major fundraising events similar to those in previous years, such...
Bitcoin Soars 130% This Year: Will It Reach New All-Time Highs in 2024?
Bitcoin is currently trading within an ascending channel, maintaining support at $35,000, with an upward trajectory towards the psychological resistance...
Cannabis2 weeks ago
U.S. Giant Constellation Brands Scaling Back Cannabis Investments
Crypto1 week ago
Bitcoin to Pause and Recharge: Florian Grummes Predicts a Brief Respite before the Next Bull Run
Crypto1 day ago
How a Newly Launched Bitcoin ETF Is Seen by Investors
Impact Investing2 weeks ago
Why the European Biosolutions Coalition Is Important