Gokada, a prominent Nigerian last-mile delivery company, filed for Chapter 11 bankruptcy protection on October 18, 2024, according to regulatory filings in Delaware.
Why it matters
- Chapter 11 allows companies to reorganize their debts and avoid liquidation by repaying creditors over time.
- Gokada’s filing follows failed fundraising efforts, including a 2023 campaign to raise $750,000 at a $10 million valuation via GetEquity.
The numbers
- Total liabilities: $5.2 million, including $1.8 million owed to 20 non-insider creditors.
- Total assets: $560,000, with only $64,000 in cash.
- Revenue: $118,988 in 2024, a sharp decline from $268,779 in 2023.
The CEO’s take
Olutosin Oni, CEO since 2022, acknowledged Gokada’s prolonged financial struggles in an email to investors:
“Significant time and effort has been put into making Gokada profitable… unfortunately, with the severe decline in the value of the Nigerian Naira, we have not yet reached that goal.”
Context
- Gokada raised $5.3 million in a 2019 Series A round but has struggled to stay afloat due to mounting debts and economic challenges.
- The Lagos State government’s 2020 ban on bike-hailing services in 15 local government areas dealt a significant blow to its operations.
The backstory
Founded by Fahim Saleh and Deji Oduntan, Gokada initially gained traction as a bike-hailing service in Lagos, completing over 1 million trips by 2019.
Source: TechCabal
