Untapped Partners with Asaak to Finance Motorcycles for Boda Boda Drivers in Uganda
Partnership expands financing options for African SMEs through Smart Asset Financing™
By: Untapped Global
Founded in 2016, Asaak offers small loans via mobile phones to entrepreneurs who would otherwise not have access to fast and affordable credit. Over the years, Asaak learned that loans created more impact when directly disbursed as productive assets, rather than cash. This guarantees productive use of the funds, and dramatically lowers credit risk.
Untapped Global finances revenue-generating assets for entrepreneurs and SMEs, from small pilots to scale-ups in a range of sectors including water, mobility, energy and agro-processing, via a network of local operators all over Africa. Asaak will use Untapped's Smart Asset Financing™ investment platform to facilitate growth for entrepreneurs in its operating markets. Smart Asset Financing™ leverages IoT technology to make investments safer and more profitable by tracking assets and capturing revenue in real time.
"The Asaak team is very excited about this partnership,"
Asaak's boda boda financing program approves drivers for motorcycle loans based on financial and behavioral data, such as the number of trips completed on mobility apps, including Bolt (Taxify), Jumia, and several Savings and Credit Cooperatives (SACCO's). Asaak's boda boda financing program implements a lease-to-own model through which drivers rent motorcycles for a 15-24 month repayment period, before becoming full owners. Most boda drivers rent motorcycles because they cannot afford to buy one in cash, nor do they have the formal credit history or documented income to qualify for a bank loan. Renting a motorcycle becomes very expensive over time since the driver never builds equity in his business. This is where Smart Asset Financing™ comes in.
Asaak's partnerships with ride hailing apps such as Jumia, Bolt, and SafeBoda guarantee frequent rides for motorcycle drivers, while Untapped's financing of a new batch of motorbikes will help Asaak quickly scale up and gain strategic market share.
"We are pleased to join a promising company like Asaak in the growing business of boda boda financing," says Jim Chu, Founder and CEO at Untapped. "We look forward to putting our expertise to good use in the mobility business to support Asaak."
Page Updated Last on: Feb 08, 2021