Lula, a ride-sharing startup co-founded by Harambean Velani Mboweni H’18, has acquired the South African operations of U.S.-based Zeelo in a cash-only deal according to TechCabal. The acquisition marks a major milestone for the Harambeans Prosperity Fund, which counts Lula among its portfolio companies focused on unlocking prosperity through African entrepreneurship.
SMART GROWTH AMID HIGH TRANSPORT COST
Founded in 2018, Lula connects office workers with shuttle operators and has completed over 700,000 rides for 380 companies across five South African cities. As transportation remains the largest work-related expense in the country, with workers spending up to R2,180 ($121) monthly on car commutes, Lula offers employers a cost-effective way to ease that burden. By absorbing Zeelo’s 18,000 riders, the company expects to become cashflow positive and further expand its reach. “This enables us to scale smart, rather than scale fast,” said co-founder Mboweni.
LULA’S GROWTH VALIDATES PROSPERITY’S VISION
For the Harambeans Prosperity Fund, Lula’s expansion highlights the success of investing in African-led innovation. “Mboweni’s leadership perfectly embodies our mission to support transformative, Harambean-led enterprises,” said Okendo Lewis-Gayle, Founding Partner of the Harambeans Prosperity Fund. The deal cements Lula’s position as a rising star in mobility and a case study in homegrown success.
AN EXAMPLE OF HARAMBEAN COLLABORATION IN ACTION
Lewis-Gayle further praised Lula as a powerful illustration of the Harambeans Alliance in action:
“Lula is a reflection of what’s possible when a community comes together with purpose. From investment by Zachariah George H’19 of Launch Africa Ventures, to serving clients like Yoco, founded by Harambeans Lungisa Matshoba H’14 and Katlego Maphai H’23, and employing developers trained by WeThinkCode, co-founded by Arlene Mulder H’21, the connections run deep. Through the Harambeans Oppenheimer Fellowship, Lula is now serving several Oppenheimer-owned enterprises. This kind of deep, intentional interconnectedness is what drives systemic change across Africa. When we lift each other up, we build something far greater than the sum of our parts.”