Ugandan Fintech Asaak announced it has raised $30 million from a group of investors to support its business. The company provides credit to motorcycle cab (boda boda) drivers based on their personal and financial data.

“Bodaboda riders are the lifeblood of Africa, moving people and cargo from home to school to work. They just need access to motorcycles which leads them to better income opportunities and makes them able to provide for their families,” co-founder and chief business officer Dylan Terrill told TechCrunch.

Last December, Asaak finalized a partnership with investment firm Untapped Global to finance at least 2,000 boda boda owners over the next 12 months in Uganda. The country has more than one million boda boda in circulation, with more than 200,000 registered in Kampala alone. The challenge is that most of the drivers do not have sufficient money to buy their own vehicles.

Asaak claims it has financed the purchase of 5,000 motorcycles since it started operations in Uganda in 2016. The company also subsidized fuel and smartphones for drivers. As part of its future expansion, it plans to enter six other markets over the next few years.

Chamberline Moko