Nigerian mobility provider MAX.ng has raised NGN400 million (US$1 million) in capital with an innovative bond issue, the first of its kind for the mobility sector in Africa.
The bond – comprising one-year fixed interest notes – is managed by DLM Advisory (DLM), a Nigeria-based, regulated full-service developmental investment bank and is the first offering in what MAX aspires will be a NGN10 billion (US$22 million) total fundraise.
MAX, an SF partner since 2018, integrates ride-hailing technology with data-driven asset-finance to deliver a full-service business model for motorbike taxi drivers in Nigeria.
Having previously raised $8m in funding through more traditional methods, Adetayo Bamiduro, chief executive officer (CEO) and co-founder, believes this innovative method of capital raising reflects market confidence in MAX’s mission, strategy and execution capabilities.
“We are positioning MAX at the forefront of technology, financial and business model innovation to solve a fundamental aspect of Africans’ lives,” said Adetayo.
MAX.ng’s Chief Financial Officer, Guy-Bertrand Njoya, said the most exciting aspect for the company about the ground-breaking funding structure was being able to close it amidst the current social and economic uncertainty caused by Covid-19.
We are deeply honored by the confidence shown by the investment community in our ability to continue delivering vastly improved social outcomes by providing innovative financial solutions to woefully under-served communities.
The capital unlocked through the Series 1 Bond will fund MAX’s growing asset financing programme across two-wheeler, three-wheeler and other vehicle classes in Nigeria and beyond, and lead to the creation of more than 1,300 additional jobs.
Further bond issuances are planned quarterly.