Ugandan fintech start-up Asaak has raised $30 million in pre-Series A equity and debt funding to support the acquisition of motorcycles and smartphones by taxi operators.
Ugandan fintech start-up Asaak has raised $30 million in pre-Series A equity and debt funding to support the acquisition of motorcycles and smartphones by taxi operators.
The round was led by new and existing investors including Resolute Ventures, Social Capital, HOF Capital, Founders Factory Africa, End Poverty Make Trillions, Decentralized VC and a number of angel investors.
Formed in 2016, Asaak offers financial services, via a digital platform, to entrepreneurs who otherwise would not have access. It advances loans to drivers who operate motorcycle taxis (bodabodas) based on their financial and behavioural data, such as the number of trips completed on mobility apps, including Bolt, SafeBoda, Uber, and Jumia. The start-up uses data from these third-party platforms to generate a credit score for the borrowers.
To apply for a loan, all a driver needs is to submit their riding history on any of the hailing platforms. Qualified drivers usually receive motorcycle financing of about $1,500 within three days of signing up. They pay an interest of between 1 to 4% depending on their credit score.
Last month, Asaak patterned with Untapped Global, an innovative investment company focused on emerging markets, to provide financing for over 2,000 motorcycles over the next 12 months.
Although Bodabodas are a popular mode of transport across Africa, the market remains largely untapped and unregulated.
However, it has lately attracted the attention of private investors keen to bring order into the industry through the use of technology to make it easier for drivers to locate customers and regulate pricing.
Last month, for example, Google announced it invested an undisclosed sum from its Africa Investment Fund in Ugandan bike-hailing start-up, Safeboda.
Moreover, a number of startups such as Opibus, eBee Africa and Mazi Mobility have emerged with the goal of providing electric motorcycles for the African market.
