Metro Africa Xpress Inc. or MAX.ng, -a Nigerian vehicle subscription startup, plans to raise $100 million to deploy electric vehicles (EVs) in 10 African countries as demand for cheap, low-emissions transport increases.
The company, backed by private-equity firm Lightrock LLP, expects to raise the funds by “the end of 2023,” enabling it to operate in countries including Cameroon, Uganda and Egypt, David Hoyme, director of international expansion, said in an interview with Bloomberg.
The firm currently has operations in Nigeria and Ghana.
“We are leading the transition to electric and smart urban mobility with positive impact on the planet. Our EVs are designed to fit perfectly into Africa’s unique commute system,” the firm said on its website.
In 2020, MAX.ng, secured NGN400 million (US$1 million) in capital, under a first-of-its-kind securitisation of vehicle lease receivables under a Private Company Bond programme.
Founded 5 years ago, MAX.ng is a mobility platform that connects users to vetted professional motorcycle-taxi drivers via a mobile app.
The company had previously raised over US$8 million in funding via more traditional methods.
It partnered DLM Advisory, a Nigeria-based investment bank, to issue a host of one-year fixed rates notes under its NGN10 billion bond programme.
The startup claimed the transaction is the first securitisation of motorcycle, tricycle and other classes of vehicle finance assets in Sub-Saharan Africa.
The first series of the bond, totalling NGN400 million, was issued as a private placement to select pre-qualified investors.