Metro Africa Xpress, the largest vehicle subscription platform for low-to-zero emission vehicles in Africa, has raised $31 million of new capital, in the first close of a Series B funding round, with funding from private equity firm Lightrock and UAE’s Global Ventures.
Subsequent closes are expected in the next few weeks, a company statement said.
The Series B close follows MAX’s previous raising of over $40 million of institutional debt for driver financing.
The Series B round will be used to drive international expansion into Egypt and Ghana during the first quarter of 2022, followed by Francophone, East, and Southern Africa. The capital will also enable the deployment of electric vehicles and charging infrastructure, and the provision of credit and financial products to over 100,000 drivers.
The oversubscribed round included participation from new investors such as Venture debt from Proparco, the French development finance institution, through its Digital Africa Bridge Fund. Existing investor Novastar Ventures also participated. The endorsement of Lightrock and Global Ventures validates the strength and reach of MAX and reflects the huge market opportunity.
Adetayo Bamiduro, CEO of MAX, said: “We are delighted to announce this funding round. This new investment from highly respected global investors such as Lightrock and Global Ventures, plus continued support from our existing investors, further validates our business model and strategy.
“It is another milestone in our journey to make mobility safe, affordable, accessible, and sustainable by deploying high-performance technologies and operators. The investment will enable us to transform the lives of hundreds of thousands of drivers across the continent, accelerate international expansion, and continue our pioneering initiatives in the mobility space.”
MAX is building the rails for mobility in Africa by delivering integrated, affordable and collateral-free vehicle subscription packages including low to zero-emission vehicles, healthcare, insurance, maintenance, and eHailing subscriptions. This helps drivers maximise their revenues and minimise costs.
MAX’s innovative technology platform leverages alternative data sets to power driver onboarding, dynamic credit assessment, fleet optimization, digital payments, and advanced risk management.
The Company has pioneered this operating model and its technology is powered in partnerships with global OEMs such as Yamaha, ride-hailing platforms such as Bolt, financial services strategic partners, payment infrastructure providers and clean energy providers.
MAX’s market is over 15 million commercial drivers across Africa’s $250 billion mobility industry, and the company has grown rapidly. Currently, it serves over 13,000 drivers, with over 60,000 prospective drivers in the pipeline. Over 17 million trips have been completed on the platform, which has saved 22,000 tonnes of CO2.
Ravi Sharma, Partner at Lightrock, said: “With rapid urbanization fuelling the African mobility market growth, MAX is effectively and sustainably matching supply and demand for affordable, safe and reliable transportation to the benefit of passengers, drivers and the environment, pioneering electric vehicles in Africa. We are enthusiastic about backing MAX and their highly capable management team in further scaling the transformation of African mobility.”
Noor Sweid, a General Partner at Global Ventures, said: “With Max, we were drawn to both the team and the product. The company was founded by a stellar and experienced team with a deep and thorough understanding of the market, who have successfully built a comprehensive tech-driven platform that is truly driver-centric, offering a one-stop solution with embedded fintech, insurtech and govtech services. We are thrilled to welcome them to the portfolio as our first investment in the African mobility space.”