MAX raises fund in series B round, bringing total to $71m
By Jeph Ajobaju, Chief Copy Editor
Metro Africa Xpress MAX has raised $31 million in Series B investment round besides $40 million previously secured, bringing its outlay to $71 million to strengthen its claim as Africa’s largest vehicle subscription platform.
The round was led by Lightrock, a global private equity platform; and Global Ventures, an international venture capital firm based in the United Arab Emirates.
Other participants included existing investor Novastar Ventures and new investors Venture Debt from Proparco, the French development finance institution, through its Digital Africa Bridge Fund.
MAX Chief Executive Officer Adetayo Bamiduro said the $31 million will fuel expansion into Egypt and Ghana, followed by Francophone, East, and Southern African countries in the first quarter of 2022 (Q1 2022).
The funds will also be used to deploy electric vehicles and charging infrastructure, as well as provide credit and financial solutions to more than 100,000 drivers, per reporting by Nairametrics.
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MAX backstory
MAX was founded in 2015 by Bamiduro and Chinedu Azodoh to provide integrated, affordable, and collateral-free vehicle subscription packages that include low to zero-emission vehicles, healthcare, insurance, maintenance, and eHailing.
This allows drivers to increase their earnings while lowering costs.
MAX’s tech platform powers driver onboarding, credit evaluation, fleet optimisation, digital payments, and advanced risk management by leveraging alternative data sets.
The operational model was developed in collaboration with major original equipment manufacturer (OEM) Yamaha, ride-hailing platforms like Bolt, financial services partners, payment infrastructure providers, and clean energy suppliers.
MAX says it serves more than 15 million commercial drivers in Africa’s $250 billion transportation business, and has seen rapid growth.
It employs more than 13,000 drivers and another 60,000 prospective drivers are on the queue. More than 17 million trips have been completed on the platform, saving 22,000 tonnes of CO2.
Validation of business model
“We are delighted to announce this funding round. This new investment from highly respected global investors such as Lightrock and Global Ventures, plus continued support from our existing investors, further validates our business model and strategy,” Bamiduro said.
“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.”
Ravi Sharma (Partner at Lightrock)
“With rapid urbanisation 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.”
Noor Sweid (General Partner at Global Ventures)
“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 have 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.”
Brian Odhiambo (Novastar Ventures West Africa Director)
“Novastar was an early supporter of MAX and we’ve been impressed by the tremendous growth the business has achieved 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.”
