Asaak, a financial technology company operating in Uganda, has raised $30 million (about Shs105b) through crowd funding.
The funds will help the fintech to provide financing to Ugandans who wish to acquire motorcycles and smartphones through leasing.
Asaak’s boda boda financing programmes approves drivers for loans based on financial and behavioural data, such as the number of trips completed on mobility apps, including Bolt (Taxify), Safeboda, Uber and Jumia.
Several investors participated in this round of funding such as Resolute Ventures, Social Capital, HOF Capital, Founders Factory Africa, End Poverty Make Trillions, and Decentralized VC.
“Our goal at Asaak is to make it easier for gig economy workers across Africa to access sustainable financial services,” Dylan Terrill, Chief Business Officer of Asaak said.
“Asaak is unlocking mobility-based work, which literally moves the economy forward and creates upward mobility for these individuals. Boda boda 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,” he added.
Asaak started operations in Soroti Uganda in 2016, and has so far helped more than 5,000 riders acquire motorcycles.
The company also provides smartphones and fuel financing to the operators.
“By financing these types of assets, we’re not just creating a pathway to vehicle ownership, which is good in itself, but we’re creating a stable source of income because of the reliance of drivers throughout the countries that we are in,” Terrill adds.
This comes a month after Asaak partnered with Untapped Global, an innovative investment company, to provide financing for over 2,000 motorcycles over the next 12 months.
Untapped and Asaak had a successful initial pilot in November 2020 to finance 40 motorbikes, and last month, Untapped signed on to provide scale-up financing for over 2000 bodas in the next 12 months.
To acquire a boda boda from Asaak, one needs the following;
1. Minimum deposit Ugx. 795,000.
2. 2 Guarantors with National ID
3. National ID
4. LC1 Letter.
5. Boda Stage Letter