Asaak acquires FlexClub Mexico, expands into Latin America
Asaak, the pioneering Ugandan fintech company, has achieved a remarkable milestone with its acquisition of FlexClub Mexico, expanding operations across two continents. This move marks Asaak's entry into the Latin American market and signifies its commitment to transforming financing for mobility workers around the world.
Since achieving profitability in Uganda, this acquisition of FlexClub Mexico by Asaak represents a strategic long-term investment and significant leap forward in proliferating affordable financing across emerging markets. This transaction empowers Asaak to build on its innovative credit ecosystem, collaborating with FlexClub Mexico's expert team to create transformative financial solutions tailored for the Latin American region.
"Our departure from the Mexican market is driven by the need for sharper focus in this very challenging economic environment, not a reflection of the potential. We are excited about the opportunity for the talented FlexClub Mexico team including Javier Serrano, Gerardo Cedano, Karen Garcia, and Emmanuel Velez to join Asaak and contribute to their vision in Latin America," said Tinashe Ruzane, CEO and co-founder of FlexClub. According to Ruzane, FlexClub will continue to prioritize its work with car rental and leasing companies in South Africa to catalyze vehicle subscriptions in the country.
Asaak's acquisition of FlexClub Mexico opens a new era in mobility financing. By extending its reach into Latin America, Asaak is addressing a critical gap in the financial landscape. Through this deal, Asaak will introduce its innovative incremental credit solutions to Mexico, enabling workers to more seamlessly access affordable credit for their economic advancement.
“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. We’ve proven this can be done profitably at scale for our clients , both online and in person,” said Kaivan Khalid Sattar, CEO and founder of Asaak.
The acquisition reflects Asaak's commitment to reimagining financial inclusion in the mobility financing space. Through the collaboration, Asaak envisions empowering Latin American workers to secure their financial futures by accessing credit that aligns with their needs. "We're thrilled to bring African innovation to Latin America through the acquisition of FlexClub Mexico. This is a testament to our vision of creating meaningful financial solutions that transcend borders and foster prosperity for mobility workers across emerging markets," said Sattar.
The partnership between Asaak and FlexClub Mexico is poised to catalyze prosperity in Latin America. Over the last few years, FlexClub Mexico received thousands of applications for vehicles from mobility workers in Mexico, thanks to its partnership with platforms like Uber. This presents an incredible opportunity for Asaak to serve these customers with its broader credit proposition and pioneer this innovative model in Latin America.
The FlexClub Mexico team, now Asaak Mexico, is led by General Manager Javier Serrano who helped build the team and portfolio from scratch. “We are really excited to embark on this new chapter in our company's journey. We started four years ago by providing a simple and transparent car lease to drivers struggling in an informal market rife with fraud. With the trust of these early clients, our years of experience in the market, and Asaak's tech-driven approach to scaling operations, we now look to serve a wider audience with even better financial products,” said Serrano.
Asaak's global team is strongly supported by its consortium of investors including Simple Capital, Untapped Global, and Cauris Finance, from whom Asaak has raised more than $30 million in equity and debt financing. Their unwavering commitment underscores the confidence in Asaak's mission to revolutionize mobility financing globally.
"As active investors in both Asaak and FlexClub, simple.Capital() spotted an opportunity to procure the acquisition of FlexClub’s Mexican business by Asaak. We congratulate both management teams on the closing of this transaction which we believe has significant benefits for both Asaak and FlexClub," commented Blake Musgrove, Partner and Chief Investment Officer at simple.Capital().
Asaak's strategic acquisition of FlexClub Mexico cements its role as a transformative force in mobility worker financing. This collaboration is set to redefine financial norms and empower workers to access credit solutions that enhance their financial resilience and enable economic progress.