Gokada, one of Nigeria’s leading dispatch delivery companies, filed for Chapter 11 bankruptcy protection on October 18, 2024, according to regulatory filings in Delaware. The filing allows Gokada to restructure its debts and potentially avoid liquidating its assets while working out a plan to repay creditors.
This move follows unsuccessful attempts to secure new funding, including a 2023 campaign on GetEquity aimed at raising $750,000 at a $10 million valuation. Despite raising $5.3 million in a 2019 Series A round, Gokada’s financial difficulties have worsen, with liabilities totaling $5.2 million and assets worth just $560,000, including $64,000 in cash.
In an email to investors, CEO Olutosin Oni cited the failure to close new funding and the severe depreciation of the naira as key factors that have pushed the company to the brink of closure. “Significant time and effort has been put into making Gokada profitable over the years unfortunately with the severe decline in the value of the Nigerian Naira, we have not yet reached that goal” Oni wrote.
The company’s troubles have been compounded by regulatory challenges. A 2020 ban by the Lagos state government on bike-hailing services in most parts of the city forced Gokada to shift to logistics and food delivery. Despite initial success, including processing over $100 million in annualized transaction value by mid-2020, the company’s financial health continued to deteriorate.
By February 2024, Gokada had fully embraced this asset-light approach, owning only 10% of the 5,000 bikes on its platform. Yet, reports of an acquisition by logistics firm Kwik, which never materialised, suggested the business still struggled.
Despite these setbacks, Gokada’s lead investor, Rise Capital, has remained supportive. Alhough, they are no longer able to fund the company independently. Gokada now faces the challenge of securing new investment or finding an acquisition partner to survive.
