Kango, a children-focused ride-sharing service, recently fund raised $3.6 million in a Series A funding round that was led primarily by National Express.
As part of the agreement, David A. Duke, CEO emeritus of National Express, is joining Kango’s board.
The funding announcement comes in the wake of the recent $40 million secured by another child ride-sharing service, Zum, and demonstrates growing investor appetite for services that shuttle kids around.
Additionally, the raise shows how the fledgling sector is expanding from an Uber-like private mobility service into the school transportation market. Around 23 million school-age children between kindergarten and 12th grade get to school by car each day, according to Duke.
Although it’s difficult to place a dollar value on the potential market, Duke said the rideshare space overlaps with the child care market, valued at around $43 billion, and the school transportation market, which clocks in around $24 billion.
“We think this is a huge space,” Duke told FreightWaves. “We think Kango taps into a growing and unmet need in that marketplace, and frankly we’d like to be part of it.”
Kango will use the money to expand geographically and grow partnerships with school districts, said co-founder and CEO Sara Schaer.
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