Nigerian mobility startup, MAX.ng, has raised $1 million in capital under a securitisation of vehicle lease receivables under a Private Company Bond program.
According to the company, the transaction is the first securitisation of motorcycle, tricycle and other classes of vehicle finance assets in Sub-Saharan Africa, excluding South Africa, and the first bond issuance and asset-backed bond transaction by a mobility company on the continent.
The company had previously raised over US$8 million via traditional methods. Still, it recently partnered with DLM Advisory, a Nigeria-based developmental investment bank to issue a host of one-year fixed rate notes under its overall $22million bond programme.
Proceeds shall be used to fund the startup’s growing asset financing programme across two-wheeler, three-wheeler and other vehicle classes in Nigeria and beyond, as MAX.ng continues to institutionalise driver financing across the continent.
Founded in 2015, MAX.ng is an on-demand motorbike hailing and delivery service platform that connects users to vetted professional motorcycle-taxi drivers via a mobile app.
In June 2019, the company announced plans to introduce e-bikes after closing a $7 million round led by Kenyan Venture capital firm, Novastar Ventures, and Japanese multinationals, Yamaha. In August 2020, it finally unveiled these bikes. Plans are also underway to venture into water and tricycle transportation, as well as the deployment of mobile payments in partnership with Mastercard.
According to data from Crunchbase, since its launch in 2015, MAX has raised up to $8.2 million in 4 major funding rounds. The first in 2015, was a convertible note of $100,000, while venture rounds came in 2016, 2019, and 2020 at $1 million, $7.2 million and $100,000 respectively.