In pre-Series A equity and debt funding, the Ugandan fintech startup Asaak has raised $30 million in capital.
A number of angel investors together with VC’s such as Founders Factory Afrika, Resolute Ventures, Social Capital, HOF Capital, Decentralized VC and others were engaged in the funding round.
The company provides motorcycle financing to operators who are frequently turned down by traditional banking institutions because of demanding security criteria such as transactional chronologies and general ledgers.
Assak collaborates with a range of partners along with transport and e-commerce platforms, making motorcycle possession more accessible to drivers who earn income while engaged in motorbike taxis e.g., bodaboda, which is a well-liked transportation method throughout Africa, particularly in cities such as Kampala.
The Bodaboda drivers may personally own the motorbikes they use as a result of Asaak, whereas earlier, the employed majority were hired by owners or were renting and leasing the motorcycles.
Co-founder and Chief Business Officer, Dylan Terrill commented that the company is enabling mobility-based work, which propels the economy ahead and promotes upward mobility for people.
The startup accepts eligible users through behavioural and financial data such as generated income and volume of trips from platforms like Bolt, Jumia, Safeboda or Uber. After a period of agricultural lending starting in 2016, the platform shifted its focus to motorcycle financing in 2019. The business has financed the acquisition of more than 5,000 vehicles and is initiating the possibility to deliver smartphones and fuel for its adopters.
Partnering with Standard Bank, with its HQ in Johannesburg, South Africa, Asaak is aiming to provide financial and insurance services to millions of users. This collaboration comes as part of the company’s roadmap for entering six new markets in Africa in the very next future.
Photo by Random Institute