In a groundbreaking move, Asaak, a pioneering fintech company hailing from Uganda, has achieved a significant milestone through its acquisition of FlexClub Mexico, thereby expanding its operations across two continents. While the precise financial details of the transaction remain undisclosed, both parties have officially confirmed the acquisition. This strategic maneuver marks Asaak’s entry into the Latin American market, reinforcing its unwavering commitment to revolutionize financial solutions for mobility workers on a global scale.
Having already attained profitability within the Ugandan market, Asaak’s acquisition of FlexClub Mexico underscores its dedication to making a substantial, long-term investment, thus marking a momentous stride towards promoting affordable financing options across emerging markets. This strategic partnership empowers Asaak to broaden its innovative credit ecosystem by collaborating with the accomplished team at FlexClub Mexico to formulate transformative financial solutions tailored for the Latin American region.
Tinashe Ruzane, the CEO and co-founder of FlexClub, expressed enthusiasm about the talented FlexClub Mexico team joining forces with Asaak and contributing to their shared vision in Latin America. Ruzane emphasized that their decision to withdraw from the Mexican market arises from the necessity for enhanced focus within a challenging economic landscape, rather than a reflection of its 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 stated. Ruzane further affirmed that FlexClub will continue to prioritize collaboration with car rental and leasing companies in South Africa to facilitate vehicle subscriptions within the country.
Read also : Egyptian Fintech ValU Rebrands, Shifting Away from ‘Buy-Now-Pay-Later’ Model
Asaak’s acquisition of FlexClub Mexico heralds a new era in mobility financing. By extending its reach into Latin America, Asaak is effectively addressing a critical gap in the financial landscape. Through this strategic partnership, Asaak intends to introduce its innovative incremental credit solutions to Mexico, offering workers more seamless access to affordable credit for their economic advancement.
Kaivan Khalid Sattar, CEO and founder of Asaak, underscored the company’s steadfast commitment to reimagining financial inclusion within the mobility financing sector. He expressed excitement about bringing African innovation to Latin America by acquiring FlexClub Mexico, which stands as 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.
Founded in 2019 by Marlon Gallardo, Rudolf Vavruch, and Tinashe Ruzane, FlexClub connects customers seeking convenient access to long-term cars with partners that offer car subscriptions. The startup currently operates in South Africa and Mexico and maintains partnerships with Uber in both countries, facilitating car subscriptions for Uber drivers.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard