Egyptian micromobility startup Rabbit Mobility has secured $1.3 million in funding to fuel its growth and expansion plans across Egypt and other North African markets. The investment round was led by 500 Global and Untapped Global, with participation from a group of strategic angel investors.
Founded in 2020 by Kamal ElSoueni, Mohamed Mansoury, and Bassem Magued, Rabbit Mobility offers a fleet of electric scooters and bikes for short-distance transportation in urban areas. The platform aims to provide a sustainable and efficient solution to the “first and last mile” transportation challenge in Egypt’s cities.
It is currently available in seven cities across Egypt, including Cairo, Giza, and Alexandria. Rabbit claims to have served 450,000 users to date who have used its platform for over a million rides.
In the last few weeks, the Egyptian startup has tripled its fleet availability and witnessed an increase in adoption user adoption, it said in a statement.
Rabbit Mobility offers two models for users: “Unlock & Go,” which allows users to locate and rent nearby vehicles for short trips, and “Day Rentals,” which provides longer-term rentals delivered to users’ doorsteps. The company has noted particular success with female users, who made up around 55 percent of the “Day Rentals” model users in 2022.
Kamal ElSoueni, co-founder and CEO of Rabbit Mobility, commenting on the investment, said, “We are thrilled to welcome 500 Global, Untapped Global, and our esteemed angel investors to the Rabbit Mobility family. Their investment will enable us to accelerate our growth, expand our fleet, and enhance our user experience, making micromobility more accessible and convenient for Egyptians nationwide.”
Amal Dokhan, Managing Partner at 500 Global, commented on the investment: “We believe in Rabbit Mobility’s innovative approach and commitment to sustainable transportation. We are excited to support their growth and contribute to the development of the micromobility ecosystem in Africa.”
David Kleiterp, Co-Head of Investments at Untapped Global, added: “We are impressed with the innovation behind Rabbit’s tech-enabled micro-mobility platform, and with our support, we believe they will continue to scale rapidly and grow sustainably.”
Electric scooter startups have struggled globally due to high operational costs, regulatory challenges, and poor unit economics. Most have faced unsustainable business models, leading to closures or significant downsizing. Bird is the biggest example, which is now trying to make a comeback.
Rabbit aims to reach profitability by the end of the year, just two months from now, suggesting it may already have decent unit economics. The Egyptian startup plans to use the latest funds to expand its operations and fleet across the country, and potentially other markets in North Africa.