By Mark Kawalya
Uganda’s mobility-focused fintech company, Asaak, has completed the acquisition of FlexClub, marking its expansion into the Latin American market. Asaak, which began its operations in Uganda four years ago, specializes in providing financing solutions for motorbike operators who often face difficulties accessing formal banking services due to bottlenecks such as income history and regular account activity.
In addition to its core services, Asaak has formed partnerships with companies such as SafeBoda to facilitate motorcycle ownership for riders. These riders earn their livelihood by offering motorcycle taxi services, commonly known as “bodaboda,” a popular mode of transportation across Africa, especially in major cities such as Kampala.
The recent announcement of Asaak’s acquisition of FlexClub Mexico is a significant milestone in the company’s expansion strategy. FlexClub is a company that primarily offers car financing options for Uber drivers in Mexico. It also provides software that enables South African car rental companies to offer vehicle “subscriptions” to drivers. As a result of this acquisition, FlexClub will be withdrawing from the Mexican market to concentrate on its South African operations.
Tinashe Ruzane, CEO and co-founder of FlexClub, explained the rationale behind their decision to exit the Mexican market, “We emphasize the need for focused efforts in the current challenging economic environment. The talented team from FlexClub Mexico, now operating under the banner of Asaak Mexico, will contribute their expertise to Asaak’s vision in the Latin American market. “
Javier Serrano, General Manager, leads this team, which played a pivotal role in building the team and portfolio from the ground up. While the specific terms of the acquisition remain undisclosed, it is expected to boost Asaak’s innovative credit ecosystem. Collaborating with FlexClub Mexico’s experienced team, Asaak aims to develop transformative financial solutions tailored for the Latin American region. This partnership will enable Asaak to introduce its innovative incremental credit solutions to Mexico, offering workers easier access to affordable credit for their economic advancement.
Kaivan Khalid Sattar, CEO and founder of Asaak, views the vehicle as the gateway to their credit ecosystem. He noted that drivers can subsequently access additional credit for fuel, repairs, smartphones, or other essential needs. Asaak has successfully demonstrated the profitability of scaling this approach for clients, both online and in person.
