Once a trailblazer in Nigeria’s last-mile delivery space, Gokada has found itself at a critical crossroads. On October 18, 2024, the company filed for Chapter 11 bankruptcy protection in Delaware, marking a significant turn in its turbulent journey. Chapter 11 provides companies like Gokada an opportunity to restructure debts without liquidating assets, offering a glimmer of hope for financial recovery. Yet, the filing underscores the challenges the company has faced in its attempt to stay afloat in an increasingly difficult market.
Founded in 2018 by Fahim Saleh and Deji Oduntan, Gokada initially revolutionized transportation in Lagos with its bike-hailing service, helping commuters navigate the city’s infamous traffic. By 2019, the company had raised $5.3 million in a Series A round and completed over 1 million trips. However, this period of growth was short-lived. A Lagos State ban on bike-hailing in early 2020, affecting 15 of the city’s 20 local government areas, forced Gokada to pivot toward logistics and food delivery services. The shift led to layoffs of 70% of its workforce and the development of Gsend and GShop, its logistics and food delivery platforms.
Despite these adaptations, Gokada’s financial struggles persisted. Leadership changes and Nigeria’s harsh economic environment further complicated its journey. Deji Oduntan stepped down as CEO in 2019, and Fahim Saleh’s tragic death in 2020 left a leadership void. Tosin Oni, who took over as CEO in 2022, has faced the daunting task of steering the company through a weakened naira and mounting debts. By October 2024, Gokada reported liabilities of $5.2 million against assets worth just $560,000, with gross revenues falling to $118,988 for the year.
Gokada’s asset-light model, adopted to reduce costs by outsourcing fleet ownership to third parties, proved insufficient to reverse its fortunes. Efforts to raise funds, including a 2023 crowdfunding campaign, fell short of expectations, leaving the company reliant on its lead investor, Rise Capital. However, even Rise Capital’s support has reached its limit, forcing Gokada to seek relief under Chapter 11.
October’s bankruptcy filing marks another chapter in Gokada’s journey of reinvention. From bike-hailing to logistics, the company has continuously evolved to meet Nigeria’s complex market conditions. Whether the Chapter 11 filing will provide the lifeline Gokada needs to recover remains to be seen, but the company’s ability to adapt under challenging circumstances speaks to its resilience and determination.
