Ugandan FinTech firm Asaak has acquired FlexClub Mexico in a bid to develop transformative financial solutions specifically catered to the Latin American region.
The move marks the African firms entry into the LatAm market after claiming to have achieved profitability domestically, as they look to introduce their incremental credit solutions to Mexico.
Now branded as Asaak Mexico, FlexClub Mexico was established four years ago by parent company FlexClub to provide mobility financing and car loans to drivers in the midst of a market rife with fraud.
Tinashe Ruzane, CEO and co-founder of FlexClub, said: “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.
Ruzane adds that the parent company FlexClub “will continue to prioritise its work with car rental and leasing companies in South Africa to catalyse vehicle subscriptions in the country”.
Asaak aims to leverage the thousands of vehicle applications that FlexClub Mexico has received over the last few years, through partnerships with platforms such as Uber, and serve a wider customer base.
“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,” says Kaivan Khalid Sattar, CEO and founder of Asaak.
“We’ve proven this can be done profitably at scale for our clients, both online and in person.”
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