Ugandan fintech Asaak acquires FlexClub Mexico for undisclosed sum
Ugandan fintech firm Asaak, which provides asset financing to mobility workers in emerging markets, has acquired FlexClub Mexico for an undisclosed sum.
Now branded as Asaak Mexico, FlexClub Mexico was established four years ago by parent company FlexClub to provide mobility financing and car loans to drivers “struggling in an informal market rife with fraud”, comments Javier Serrano, the start-up’s general manager.
For Asaak, the acquisition marks its entry into the Latin American market after claiming to have achieved profitability in Uganda. Together, the pair hopes to develop “transformative” financial solutions specifically catered to the LatAm region, as well as introduce Asaak’s incremental credit solutions to Mexico.
Commenting on the sale of its Mexican arm, Tinashe Ruzane, CEO and co-founder of FlexClub, says: “Our departure from the Mexican market is driven by the need for sharper focus in this very challenging economic environment, not a reflection of the potential.”
Ruzane adds that the parent company FlexClub “will continue to prioritise its work with car rental and leasing companies in South Africa to catalyse vehicle subscriptions in the country”.
For its part, Asaak aims to leverage the “thousands” of vehicle applications that FlexClub Mexico has received over the last few years, through partnerships with platforms including Uber, and serve a wider customer base.
“The vehicle is the entry point into our credit ecosystem, from which drivers can eventually access additional credit for fuel, repairs, smartphones or other needs they may have,” says Kaivan Khalid Sattar, CEO and founder of Asaak.
“We’ve proven this can be done profitably at scale for our clients, both online and in person.”