Nigeria banks $1 m in oversubscribed bond Nigerian mobility startup

In a first-of-its-kind securitisation of vehicle lease receivables under a Private Company Bond scheme, Nigerian mobility startup has raised NGN400 million ( US$ 1 million) in funding under a Private Company Bond scheme it hopes will ultimately bank it with NGN10 billion ( US$ 22 million)., established in 2015, is a mobility network that connects users through a mobile app with vetted experienced motorcycle-taxi drivers. The start-up has completed over a million trips and took part in the XL Africa accelerator of the World Bank in 2017.

The business had previously raised over US$ 8 million in funding through more conventional approaches, but recently partnered with DLM Advisory, a developmental investment bank based in Nigeria, to issue a host of one-year fixed rate notes under its bond program of NGN10 billion. says that the deal is the first securitisation of Sub-Saharan Africa’s motorcycle, tricycle and other vehicle finance asset groups, outside South Africa, and the first bond and asset-backed bond issuance deal by a mobility company on the continent. The first bond series of NGN400 million was released as a private placement for the selection of pre-qualified investors and is already completely subscribed.

As continues to institutionalize driver financing throughout the continent, the proceeds will be used to finance the start-up ‘s rising asset financing program throughout two-wheeler, three-wheeler and other vehicle groups in Nigeria and beyond.

MAX is very pleased with the effective issue of bonds, which represents the faith of the market in the mission, strategy and execution capabilities of MAX. This is further proof that MAX remains at the forefront of creativity in technology, financial and business model to solve a crucial aspect of the lives of Africans, ”said Adetayo Bamiduro, chief executive officer ( CEO) and co-founder of

Sonnie Ayere, Group CEO of DLM Capital Group, said the issuance was a “bold move” in advancing the growth mandate of DLM by offering creative solutions through the capital markets to meet the funding needs of players in key sectors of the economy.

With its specific business model that deploys technology to cater to the particularity of mobility within the major cities of Nigeria, MAX has put itself at the forefront of its industry. In addition, the MAX funding programme has played a positive role in the development of jobs, he said. In view of the average cost of the vehicles financed, the capital unlocked via the Series 1 Bond would result in the creation of nearly 1,400 additional jobs, with a positive multiplier impact on the Nigerian economy in turn. As a developmental investment bank dedicated to creating direct impacts on people’s lives, because of its solid credit fundamentals and the social and economic effect it brings, we have put our cash where our mouth is and taken a credit decision to support their inaugural issuance.

On a quarterly basis, aims to reissue NGN400 million bonds.