Metro Africa Xpress Inc. (MAX) plans to improve Africa’s transportation sector after securing $31 million in a Series B funding round.
TechCrunch reports, the seed round was co-led by global private equity platform, Lightrock, and international venture capital firm, Global Ventures. Novastar Ventures and Proparco also participated in the round.
The mobile tech startup launched in 2015, initially to complete customers’ orders. As the startup developed, it incorporated ride-hail services, vehicle subscriptions, and financing services. Three years after MAX’s inception, vehicle financing became an available service and CFO Guy-Bertrand Njoya revealed the company’s attrition rate is now “close to zero,” the outlet also revealed.
“We spent time understanding drivers’ operations and it became apparent to us that most of them don’t own the vehicles they use,” said Njoya, according to TechCrunch. “It became clear that the fundamental issue that drivers face is consistent access to vehicles. And that is when we realized that if we are to be successful at solving the challenge of mobility across the continent, we have to first address the issue of vehicle access.”
How MAX aims to improve the continents mobility
To improve mobility, MAX’s commercial bank partners offer vehicle purchase loans to its drivers. Commercial banks use data provided by the mobility company in credit risk assessment to alleviate risk factors.
MAX founders Adetayo Bamiduro and Chinedu Azodoh also looked to electric vehicles to improve the mobility of the continent. By 2019, the founders spearheaded their electric mobility journey. Now, it can provide two, three, and four-wheeler EVs to drivers through leasing and finance options. The company also offers personalized electric motorcycles through its partners including leading motorcycle manufacturer Yamaha.
“It’s an additional option that we wanted to provide to the drivers because what they care most about is making a decent living through increased income. For us, electric mobility is going to be a significant driver of that objective because EVs are today more cost-effective than their gas equivalents,” said Njoya.
As Metro Africa Xpress looks ahead, it plans to become the go-to vehicle subscription and financial service platform for operators throughout the continent.
In light of new funding, MAX plans to further expand in Ghana, Egypt, and Francophone by 2022. The funds will help increase vehicle financing credit for over 100,000 drivers within the next two years.