South Africa’s mobility startup, LULA, has announced the acquisition of the operations of UK-based Zeelo in a move that will see it scale up significantly.

LULA, which was founded in 2016 by the duo of Xabiso Nodada and Velani Mboweni, is a tech-enabled ride-sharing solution that enables people to be collected from their homes and taken to work and back again safely and reliably.

Zeelo, on the other hand, is a smart bus platform for organisations with similar operations to LULA in that it provides flexible turn-key and plug-in transportation programs for commuting and school runs.

According to Nodada, the deal will see Zeelo’s South African operations transition to LULA’s solution.

“Over the last five years, LULA has consistently maintained a year-on-year growth of between 2.5x and 4x, despite interruptions caused by the COVID-19 pandemic and a global recession,” he said in a statement

“The acquisition will mean an increase in customers, vehicles and operating partners, and staff to strengthen and scale LULA’s business in South Africa, as well as into other African markets.

“Significantly, the acquisition of Zeelo‘s operations in South Africa means that LULA becomes a profitable business, with enough breathing room to scale smart, rather than scale fast,” Nodada added.

Also commenting on the deal,
Sam Ryan, founder and CEO of Zeelo said with the conclusion of the deal, the company is now directing its focus toward further expansion in the UK, Ireland, and North America.

“It has been a remarkable journey and we are grateful to our team, clients and suppliers for giving us the opportunity to serve them.

“Whilst the decision to exit the region was a challenging one, we are excited to support the transition of our customers and suppliers to the LULA platform and look forward to witnessing LULA’s future successes in tackling the transportation challenges in South Africa.“

Adenia Partners, a leading private equity firm, has completed the acquisition of Air Liquide’s operations in 12 African countries, adopting the name Erium, which will make it a pan-African leader in industrial and medical gases.

The acquisition which was first announced in March, was formally closed on Monday July 22, marking the latest in a series of controlling-stake deals and acquisitions by Adenia which has focused on growth opportunities in Africa for over 20 years.

Effective immediately, Erium will replace the Air Liquide brand in Benin, Burkina Faso, Cameroon, Congo, Côte d’Ivoire, Gabon, Ghana, Madagascar, Mali, the Democratic Republic of Congo, Senegal, and Togo.

Christophe Scalbert, a Senior Partner at Adenia, in a statement on Wednesday, said the launch of the new Erium brand signifies the beginning of a new era for its assets.

“The birth of Erium is remarkable in more ways than one. It is the culmination of an acquisition project by an African entity from an international actor; a large-scale project covering a vast geographical area and involving activities essential to the development of the continent,” said Scalbert.

“Above all, though, it is the beginning of an exciting future due to the growth prospects it offers; growth that we are committed to fully supporting for the benefit of employees, customers, and the local economic fabric.”

He stated that Erium leadership, supported by Adenia, aims to deliver value for the full spectrum of stakeholders, including employees, customers, partners, and local communities.

“The [R] sound evokes “air,” highlighting the essential natural resource integral to many gas solutions.

“Meanwhile, the [IUM] lettering suggests the scientific foundation of gases and materials, as well as premium quality and optimal solutions.

“Erium’s international name is both serious and robust, yet simple and accessible, embodying historical expertise and new agility,” he added.