Ugandan asset financing startup Asaak recently announced that it has raised $30 million in a pre-Series A equity and debt funding round and it saw participation from new and existing investors like Resolute Ventures, Social Capital, HOF Capital, Founders Factory Africa, End Poverty Make Trillions, Decentralized VC and a number of angel investors, according to media reports.
The Ugandan fintech startup offers motor financing to operators and they are often locked out by formal banking institutions due to strict laws and regulations that come from income history and regular account activity. The startup also works with mobility and e-commerce platforms to make motorcycle ownership easier for the riders, especially those who earn a living by operating motorcycle taxis (bodaboda).
Asaak co-founder and chief business officer Dylan Terrill, told the media, “Asaak is unlocking mobility-based work, which literally moves the economy forward and creates upward mobility for these individuals. Bodaboda riders are the lifeblood of Africa, moving people and cargo from home to school to work. They just need access to motorcycles which leads them to better income opportunities and makes them able to provide for their families.” Some other members of the founding team include Anthony Leontiev, Edward Egwalu and Kaivan Sattar.
With the rider data from the platform, Asaak aims to create a borrower credit score, which can apply through the app or visit the branches to know if they qualify for the financing. So far, over $1500 in credit has thus far been issued out, payable at 1 percent to 4 percent interest rate, as per credit score.