Asaak, a Ugandan startup co-founded by the visionary entrepreneur Kaivan Sattar, has reached a significant milestone by venturing into Latin America with its acquisition of FlexClub, a prominent Mexican startup.
Asaak, known for offering motorcycle and smartphone loans to Ugandans individually and through strategic partners such as SafeBoda, has strategically aligned this expansion with its broader operational plans.
The acquisition of FlexClub positions Asaak to enhance its credit ecosystem by collaborating with the skilled workforce at FlexClub Mexico to develop innovative financial solutions tailored for the Latin American region.
FlexClub is recognized for providing car financing options for Uber drivers and pioneering software solutions that enable South African car rental companies to offer vehicle “subscriptions” to drivers.
Through this partnership, Asaak, under the visionary leadership of Kaivan Sattar, aims to introduce its credit solutions into the Mexican market, streamlining access to affordable credit for employees.
This strategic move is a testament to Asaak’s ambition to replicate its successful Ugandan model in a distinctly different setting, extending its product offerings from motorcycle loans to car financing. Achieving this transition involves a deep understanding of the cultural nuances and preferences of the new customer base.
Sattar, speaking about the expansion, emphasized the role of vehicles as an entry point into their credit ecosystem. “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,” he said. “We’ve proven this can be done profitably at scale for our clients, both online and in person.”
Founded in 2016 by Sattar, Anthony Leontiev, Edward Egwalu, and Dylan Terrill, Asaak has been instrumental in providing financial services to unbanked Ugandan entrepreneurs, particularly financing for motorcycle operators with limited access to formal banking institutions.
Over the six years of its operation, Asaak, under Sattar’s leadership, has facilitated the acquisition of more than 5,000 motorcycles and expanded its offerings to include smartphones and fuel financing for operators.
To support its expansion initiatives, Asaak secured $30 million in a pre-Series-A funding round in January 2022. This funding was led by prominent investors, including Resolute Ventures, Social Capital, and Founders Factory Africa, reflecting their strong confidence in Asaak’s mission and potential.