Mondo Ride raises $5mn to drive Africa expansion

Mondo Ride, the ride-hailing mobile app based in Nairobi, has recently closed their second financing round, securing an additional $2 million in funding. This brings their total seed investment to an impressive $5 million. The CEO and Co-Founder of Mondo Ride, Troels Andersen, expressed his excitement about the successful fundraising efforts, highlighting the significant growth the company has experienced in both the corporate solution and retail market sectors in Kenya. The funds raised will be allocated towards expanding into East Africa, enhancing technology infrastructure, and investing in operational improvements. During a recent interview with CNBC Africa, Andersen discussed the company's business model and pricing strategy in the midst of intense competition and controversy surrounding other ride-hailing apps in Kenya. When questioned about how Mondo Ride determines its revenue base and pricing structure for drivers, Andersen emphasized the company's commitment to fair pricing while adhering to market standards. He noted that Mondo Ride charges a low commission rate to drivers, ultimately benefiting both drivers and customers by offering competitive fare prices. Addressing reports that indicated specific pricing details for Mondo Ride services, including a rate of 35 shillings per kilometer, three shillings per minute, and a 100 shilling minimum price, Andersen clarified that the company offers various product options to cater to different customer needs. In addition to their standard pricing, Mondo Ride provides budget-friendly options, as well as larger vehicle choices for groups. Andersen assured that the company takes pricing considerations seriously and strives to offer fares that are reasonable and competitive. When questioned about market segmentation and target clientele, Andersen discussed Mondo Ride's plans to aggressively expand in East Africa, with a primary focus on Kenya. By leveraging the recent funding, the company aims to attract a diverse range of customers, including those seeking premium taxi services, quick errand solutions, and cost-effective transportation options. Andersen hinted at the potential for introducing new services and pricing strategies to appeal to different market segments and enhance overall customer experience. In a rapidly evolving industry marked by fierce competition and evolving customer demands, Mondo Ride's successful fundraising efforts reflect the company's commitment to growth, innovation, and customer-centric approach. The expansion into East Africa signals a new chapter of opportunities and challenges for Mondo Ride as they navigate the dynamic landscape of the ride-hailing sector in the region.