Victor EzejaMetro Africa Xpress Inc. (MAX), a leading vehicle subscription platform for low-to-zero emission (electric vehicles) in Africa has raised $31 million of new capital in the first close of a Series B funding round.
Subsequent closes are expected in the next few weeks.
MAX provides a platform for vehicle subscription and other financial services for transport companies and drivers in Africa. It is currently working on introducing the use of electric vehicles and associated infrastructure to solve mobility needs across Africa, while also contributing to the global agenda of reducing carbon emission in the atmosphere.
Max’s funding round was led by global private equity platform, Lightrock, and UAE-based international venture capital firm, Global Ventures. This is the first Lightrock’s investment in the African mobility space.
Prior to the Series B funding close, MAX’s had raised over $40 million of institutional debt for driver financing.
The capital raised in the Series B funding round will be used in the deployment of electric vehicles and charging infrastructure, and the provision of credit and financial products to over 100,000 drivers.
It will also be used to drive international expansion into Egypt and Ghana during the first quarter of 2022, followed by Francophone, East, and Southern Africa. The Series B round included participation from new investors such as Venture debt from Proparco, the French development finance institution, through its Digital Africa Bridge Fund; and existing investor, Novastar Ventures.
The endorsement of Lightrock, and Global Ventures is said to have validated the strength and reach of MAX, and also reflects the huge market opportunity.
Commenting on the outcome of the funding round, CEO of MAX, Adetayo Bamiduro, said, the exercise which attracted new investment from highly reputable global investors such as Lightrock and Global Ventures and other existing investors has further validated the company’s business model and strategy.
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“It is another milestone in our journey to make mobility safe, affordable, accessible, and sustainable by deploying high-performance technologies and operators. The investment will enable us to transform the lives of hundreds of thousands of drivers across the continent, accelerate international expansion, and continue our pioneering initiatives in the mobility space,” Bamiduro stated.
MAX was founded in 2015 by Adetayo Bamiduro and Chinedu Azodoh, to provide affordable and collateral-free vehicle subscription packages including low to zero-emission vehicles, healthcare, insurance, maintenance, and eHailing subscriptions in the Africa mobility market. This helps drivers maximise their revenues and minimise costs.
MAX’s has innovative technology platform that leverages alternative data sets to power driver onboarding, dynamic credit assessment, fleet optimization, digital payments, and advanced risk management.
The Company has pioneered this operating model and its technology is powered in partnerships with global OEMs such as Yamaha, ride-hailing platforms such as Bolt, financial services strategic partners, payment infrastructure providers and clean energy providers.
MAX’s has over 15 million commercial drivers across Africa’s $250 billion mobility market. Currently, it serves over 13,000 drivers, with over 60,000 prospective drivers in the pipeline.
Over 17 million trips are said to have been completed on the platform, which has saved 22,000 tonnes of CO2.
Also speaking on the deal, a Partner at Lightrock, Ravi Sharma, said, “With rapid urbanization fuelling the African mobility market growth, MAX is effectively and sustainably matching supply and demand for affordable, safe and reliable transportation to the benefit of passengers, drivers and the environment, pioneering electric vehicles in Africa. We are enthusiastic about backing MAX and their highly capable management team in further scaling the transformation of African mobility.”
A General Partner at Global Ventures, Noor Sweid said, “With Max, we were drawn to both the team and the product. The company was founded by a stellar and experienced team with a deep and thorough understanding of the market, who has successfully built a comprehensive tech-driven platform that is truly driver-centric, offering a one-stop solution with embedded ‘fintech’, ‘insurtech’ and ‘govtech’ services. We are thrilled to welcome them to the portfolio as our first investment in the African mobility space.”
The West Africa Director at Novastar Ventures, Brian Waswani Odhiambo, said, Novastar has been supporting MAX from the onset and is impressed by the company’s tremendous growth in the last few years.
“We are excited to not only double down in this round but also to welcome new investors Global Ventures, Lightrock, and others to the journey. The team at MAX has built great solutions for mobility and we can’t wait to scale these into new markets in Africa and the rest of the world.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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