By Arthur
Asaak, the pioneering Ugandan fintech company, has strategically expanded its operations across two continents by acquiring FlexClub Mexico. This acquisition marks Asaak’s entry into the Latin American market, reaffirming its commitment to revolutionizing financing for mobility workers worldwide.
Founded in 2016, Asaak initially provided loans to farmers and small and medium enterprises. In 2019, the company pivoted to motorcycle financing, targeting operators who often faced barriers to accessing traditional banking due to stringent requirements such as income history and regular account activity. Asaak uses behavioural and financial data, including earnings, trip records, and ratings from platforms like Bolt, Jumia, Safeboda, and Uber, to create a credit scoring system. This approach has enabled Asaak to finance the purchase of over 5,000 motorcycles and expand its offerings to include smartphones and fuel financing for operators. Additionally, Asaak has partnered with Standard Bank to provide financial services to workers in the informal sector, offering a range of tailored services, including finance and insurance.
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Acquiring FlexClub Mexico and Vision for Latin America
After achieving profitability in Uganda, Asaak’s acquisition of FlexClub Mexico represents a strategic, long-term investment to expand affordable financing across emerging markets. This transaction further empowers Asaak to develop its innovative credit ecosystem, collaborating closely with the experienced FlexClub Mexico team to create transformative financial solutions tailored to the Latin American region.
Tinashe Ruzane, CEO and co-founder of FlexClub emphasized, “Our departure from the Mexican market is driven by the need for sharper focus in this very challenging economic environment, not a reflection of the potential.” He expressed excitement about the opportunity for the talented FlexClub Mexico team to join Asaak and contribute to their vision in Latin America.
With the acquisition of FlexClub Mexico, Asaak is poised to usher in a new era in mobility financing in Latin America. This strategic move addresses a critical gap in the financial landscape, allowing Asaak to introduce its innovative incremental credit solutions to Mexico. This, in turn, will enable workers to access affordable credit seamlessly, promoting their economic advancement.
Kaivan Khalid Sattar, CEO and founder of Asaak emphasized, “The vehicle is the entry point into our credit ecosystem, from which drivers can eventually access additional credit for fuel, repairs, smartphones, or other needs they may have.” He highlighted the profitable scalability of this model, both online and in person.
Commitment to Financial Inclusion
The acquisition reflects Asaak’s unwavering commitment to reimagining financial inclusion in the mobility financing space. Through this collaboration, Asaak aims to empower Latin American workers, providing them access to credit tailored to their needs. Sattar stated, “We’re thrilled to bring African innovation to Latin America by acquiring FlexClub Mexico. This is a testament to our vision of creating meaningful financial solutions that transcend borders and foster prosperity for mobility workers across emerging markets.”
The partnership between Asaak and FlexClub Mexico is poised to catalyze prosperity in Latin America. FlexClub Mexico has received thousands of vehicle applications from mobility workers in Mexico over the years, thanks to its partnerships with platforms like Uber. This presents an incredible opportunity for Asaak to serve these customers with its broader credit proposition and pioneer this innovative model in the Latin American market.
Javier Serrano, General Manager of Asaak Mexico (formerly FlexClub Mexico), expressed excitement about this new chapter, highlighting the company’s journey from providing simple and transparent car leases to drivers in an informal market to now offering even better financial products with Asaak’s tech-driven approach.
Strong Investor Support
Asaak’s global team is backed by a consortium of investors, including Simple Capital, Untapped Global, and Cauris Finance, from whom Asaak has raised more than $30 million in equity and debt financing. These investors’ unwavering commitment underscores their confidence in Asaak’s mission to revolutionize mobility financing on a global scale. Their steadfast commitment underscores the belief in Asaak’s global mission to revolutionize mobility financing.
Blake Musgrove, Partner and Chief Investment Officer at Simple.Capital() said, “As active investors in both Asaak and FlexClub, simple.Capital() spotted an opportunity to procure the acquisition of FlexClub’s Mexican business by Asaak. We congratulate both management teams on closing this transaction, which we believe has significant benefits for both Asaak and FlexClub.”
