NIGERIA – Nigerian startup has 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.

The company which is a mobility platform that connects users to vetted professional motorcycle-taxi drivers via a mobile app had previously raised over US$8 million in funding via more traditional methods.

The shift to a more novel method of raising money was made possible through a partnership with DLM Advisory, a Nigeria-based developmental investment bank.

Disrup Africa noted that following the success of the bond, had plans to issue a host of one-year fixed rates notes under its NGN10 billion bond programme. claims the transaction is the first securitisation of motorcycle, tricycle and other classes of vehicle finance assets in Sub-Saharan Africa, excluding South Africa, and the first bond issuance and asset-backed bond transaction by a mobility company on the continent.

 The first series of the bond, totalling NGN400 million (About US$1 million), was issued as a private placement to select pre-qualified investors, and is fully subscribed already.

Proceeds from the bond shall be used to fund the startup’s growing asset financing programme across two-wheeler, three-wheeler and other vehicle classes in Nigeria and beyond, as continues to institutionalise driver financing across the continent.

“MAX is extremely pleased with the successful bond issuance, which reflects the market confidence in MAX’s mission, strategy and execution capabilities.”

Adetayo Bamiduro – chief executive officer (CEO) and co-founder of

Sonnie Ayere, group CEO of DLM Capital Group, said the issuance was a “bold step” in advancing DLM’s developmental mandate by providing innovative solutions to meet the funding needs of players in key sectors of the economy, through the capital markets.

Ayere noted that MAX has positioned itself at the forefront of its industry with its unique business model that deploys technology to cater to the peculiarity of mobility within Nigeria’s major cities.

He further noted the MAX unique funding programme has positively impacted Nigeria’s economy in the aspect of employment creation.

“Given the average cost of the vehicles financed, the capital unlocked through the Series 1 Bond will lead to the creation of close to 1,400 additional jobs, which in turn has a positive multiplier effect on the Nigerian economy,” Ayere said.

He further noted that, “As a developmental investment bank committed to creating direct impacts to the lives of people, we have put our money where our mouth is and have taken a credit decision to support their inaugural issuance.”

Founded in 2015, startup has completed over one million trips, and took part in the World Bank’s XL Africa accelerator in 2017.

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