Ugandan fintech startup, Asaak, has raised $30 million in a pre-Series-A funding round to deepen operations, as it prepares to enter new markets on the continent in line with its strategic expansion plans.
Asaak is a Ugandan startup co-founded by Kaivan Sattar, Anthony Leontiev, Edward Egwalu and Dylan Terrill in 2016.
It operates as a financial services provider to unbanked Ugandan entrepreneurs, providing financing for motorcycle operators who are locked out by formal banking institutions.
Since it commenced operations about six years ago, the startup has financed the purchase of 5,000 motorcycles and started offering smartphones and fuel financing to operators.
Its pre-Series-A funding round, which is a mix of equity and debt financing, was led by Resolute Ventures, Social Capital, HOF Capital, Founders Factory Africa, End Poverty Make Trillions, Decentralized VC and a number of angel investors.
The startup noted that the $30-million capital injection will be used to support the acquisition of motorbikes for operators and also the adoption of smartphones by taxi operators.
It also revealed plans to enter six new markets in Africa in the near future.
Dylan Terrill, co-founder and chief business officer of Asaak, said: “Asaak is unlocking mobility-based work, which literally moves the economy forward and creates upward mobility for these individuals. 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.”
