Ugandan Startup, Asaak, Expands to Latin America Through the Acquisition of Mexican Startup, FlexClub.

Asaak, a trailblazing fintech firm from Uganda, has reached a significant milestone with its acquisition of FlexClub Mexico, extending its operations across two continents. Details of the transaction were not revealed but the acquisition was confirmed by both parties. This strategic move signifies Asaak’s entry into the Latin American market and underscores its dedication to revolutionizing financial solutions for mobility workers globally.

Having achieved profitability in Uganda, Asaak’s acquisition of FlexClub Mexico represents a strategic long-term investment, marking a significant stride in promoting affordable financing across emerging markets. This deal enables Asaak to expand its innovative credit ecosystem, joining forces with FlexClub Mexico’s expert team to develop transformative financial solutions tailored for the Latin American region.

Tinashe Ruzane, CEO and co-founder of FlexClub expressed excitement about the opportunity for the talented FlexClub Mexico team to join Asaak and contribute to their vision in Latin America. He emphasized that their exit from the Mexican market is driven by the need for sharper focus in the challenging economic environment, not a reflection of the potential.”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,” he said. 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 heralds 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 access affordable credit for their economic advancement more seamlessly.

Kaivan Khalid Sattar, CEO and founder of Asaak highlighted the company’s commitment to reimagining financial inclusion in the mobility financing space. He expressed excitement about bringing African innovation to Latin America by acquiring FlexClub Mexico, a testament to Asaak’s vision of creating meaningful financial solutions that transcend borders and foster prosperity for mobility workers across emerging markets.“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. 

The partnership between Asaak and FlexClub Mexico is set 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.

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.

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.

Asaak breaks the norm of Ugandan startups expanding regionally to Kenya, Tanzania or Rwanda. A few other startups like Tala and Branch, have expanded to Latin America after beginning their operations in Kenya while Nigeria’s Kuda expanded to Pakistan. Also, Asaak expands at a time when many startups are scaling back on their growth plans due to a funding winter and prevailing macroeconomic conditions, but having achieved two consecutive profitable quarters, the startup is confident about this new direction.