Asaak, a Ugandan mobility fintech company, recently expanded throughout Latin America after purchasing Flexclub, a Mexican asset finance company. The CEO of the fintech company claimed that the acquisition of the Mexican startup was in part motivated by the success and profitability of the company’s microfinance division.
As we know, mobility is a major driver of development in any economy — #Africa being no different! Check out #Asaak, a Ugandan asset financing #fintech that has raised more than $30M from a group of investors to provide credit to motorcycle (#bodaboda) drivers 🏍 pic.twitter.com/3Hhtyp4lgC
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Asaak’s Profitable Business
The car lending firm Flexclub Mexico was recently bought by the Ugandan mobility fintech Asaak for an unknown sum. One article claims that Asaak’s purchase of the Mexican startup asset financing company may open up the South African and Mexican microfinance markets to the Uganda-based startup company. According to rumors, Flexclub has turned away from the Mexican market.
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The co-founder and CEO of the Ugandan fintech, Kaivan Sattar, said that his organization’s very lucrative microfinance division played a role in the decision to buy the Mexican venture.
According to a Techcabal report, the fact that the same investor funded both firms may have had an impact on Asaak’s choice to purchase Flexclub Mexico.
As active investors in both Asaak and FlexClub, simple.Capital() saw an opportunity to help Asaak acquire the Mexican operations of FlexClub. Blake Musgrove, partner and chief investment officer at Simple.capital, allegedly said, “We congratulate both management teams on the closure of this transaction, which we feel has major benefits for both Asaak and FlexClub.
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The CEO and co-founder of Flexclub, Tinashe Ruzane, stated that the startup’s choice to leave the Mexican market has allowed it to concentrate its efforts on the South African market.