Kenya’s logistics startup BuuPass recently raised $1.3 million in pre-seed funding to expand its booking service and rope in more bus companies. According to its founders, the funds will enable the company to expand its market share in Kenya and Uganda.

Formerly known as MagicBus, BuuPass offers a platform where travelers can book seats on selected routes. Bus companies can plug into the platform to digitize their booking and payment operations. The startup is working with top bus companies from Kenya and Uganda. In addition, travelers can book local flights and pay via mobile money.

The company has a dedicated mobile application for Android, a USSD code and a web portal where all bookings can be done. Users can also access the service on the M-Pesa app.

(Bus terminal in Nairobi, Kenya / Photo by Nodo News)

BuuPass founders Sonia Kabra and Wycliffe Omondi aim to bring order to the transport industry through digital tools. BuuPass is actively looking to promote order in the highly fragmented sector by helping operators to digitize their operations.

“Digital transformation isn’t happening yet in Africa’s (bus) transportation sector, and 95% of ticketing operations are still done manually,” Kabra told Nodo News in an interview in Nairobi. The startup processes about 12,000 transactions a day.

BuuPass Wants to Record Up to 70,000 Transactions Per Day

It has recorded over 9 million ticket sales so far in the seven years it has been active. In 2022, its gross merchandise value was slightly over $30 million, as reported by TechCrunch.

Using AI, its platform aggregates key data, including location, time, vehicle registration number, and fare price, relevant for travelers to make decision and for authorities to execute regulatory checks.

Its main passenger destinations in Kenya are Nairobi, Mombasa, Kisumu, Homa Bay, Kakamega, Migori, and Bondo. The startup has developed ticketing solutions for Kenya’s Standard Gauge Railway transport system, Easy Coach Limited, and Modern Coast Express. It started its operations in Uganda last November.

With over 1,000,000 bus users, more than 920 buses in operation and over 800 locations covered in Kenya and Uganda, BuuPass’ target is to grow daily transactions to between 60,000 and 70,000 by the end of the year.

-Edited by Faustine Ngila