Nigerian last-mile delivery company Gokada has filed for Chapter 11 bankruptcy protection in Delaware, according to regulatory filings. The move comes after the company's unsuccessful efforts to raise new funding, including a 2023 campaign on GetEquity, where it attempted to raise $750,000 at a $10 million valuation from retail investors.

Gokada's financial struggles are evident in its October filing, which reveals that the company's total liabilities stand at $5.2 million, with $1.8 million owed to 20 of its largest creditors who are not insiders. The company's assets are valued at $560,000, including $64,000 in cash. In 2024, Gokada's gross revenues were $118,988, a significant decline from the $268,779 reported in 2023.

In an email to investors, CEO Olutosin Oni attributed the company's financial woes to the decline in the value of the Nigerian Naira, which has made profitability elusive. Despite the challenges, Oni expressed optimism that the company can restructure its debts and achieve a financial turnaround under Chapter 11 provisions.

Gokada's lead investor, Rise Capital, has been supportive of the company's efforts to raise funding, but is no longer able to single-handedly shoulder the economic burden. The company's financial troubles have been ongoing since shortly after its 2019 Series A raise, which saw the departure of co-founder and CEO Deji Oduntan. Tosin Oni took over as CEO in 2022.

The company has undergone significant restructuring and pivoting in recent years. Founded as a bike-hailing service, Gokada expanded into logistics and food delivery after the Lagos state government banned bike-hailing startups from operating in 15 of the city's 20 local government areas in 2020. The company laid off 70% of its staff and shifted to an asset-light model, connecting third-party logistics providers with delivery orders on its platform.

Despite these efforts, Gokada's financial struggles have persisted. The company's bankruptcy filing highlights the challenges faced by startups in Nigeria's volatile economic environment. Gokada's fate serves as a cautionary tale that cutting costs alone cannot guarantee survival, and that companies must adapt and innovate to stay afloat.

The future of Gokada remains uncertain, with the company facing the daunting task of raising funding or finding an acquisition partner to survive. As the Nigerian startup ecosystem continues to evolve, the story of Gokada serves as a reminder of the importance of resilience and adaptability in the face of adversity.