The Verdant Capital Hybrid Fund, managed by Verdant Capital, has successfully completed a dual-tranche investment totaling USD 7 million in Mogo Auto Limited, known as Mogo Kenya. Mogo Kenya is a subsidiary of Eleving Group, operating in Europe, Asia, and Africa. The investment consists of a subordinated loan and a senior secured loan. This marks the third investment made by the Fund.

The primary purpose of this investment is to support the expansion of Mogo Kenya’s asset financing portfolio, which includes motorbikes (both fuel-powered and electric), tuk-tuks (three-wheelers), cars, and car logbook or leaseback financing. Mogo Kenya, established in 2018, is the largest asset financing business within the Eleving Group. The investment will enable Mogo Kenya to enhance its presence throughout the country, providing financial support to individuals seeking ownership of these vehicles.

Reasons for Investment

The decision to invest in Mogo Kenya was based on several key factors. Mogo Kenya operates in Kenya’s fintech asset financing sector, specializing in motorbikes, tuk-tuks, and cars. These vehicles play a crucial role in transportation and commerce in the country, making the investment highly relevant and necessary.

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Furthermore, Mogo Kenya has developed strategic partnerships with electric motorbike suppliers and ride-hailing companies, aiming to promote the adoption of eco-friendly e-mobility solutions. This initiative aligns with the growing global emphasis on reducing carbon dioxide emissions and noise pollution. By offering electric motorbike financing, Mogo Kenya enables riders to save on operating costs, as these vehicles are more cost-efficient in terms of consumption and maintenance.

In addition to its environmental focus, Mogo Kenya’s business model addresses the needs of unbanked self-employed entrepreneurs and small business owners. By providing affordable financing options, Mogo Kenya allows these individuals to generate income and experience tangible wealth through asset ownership. The company leverages technology, including automated processes, GPS tracking tools, and digital payments via mobile money wallets, to streamline its operations and enhance customer experience.

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The Fund was attracted to Mogo Kenya’s business model due to its alignment with the Fund’s mission of empowering “bottom-of-the-pyramid” clients while mitigating credit risks. This investment is further strengthened by a parent guarantee, providing additional security.

A Look at Mogo Auto

Mogo Auto Limited, also known as Mogo Kenya, was founded in 2018. It is a subsidiary of Eleving Group, which operates across Europe, Asia, and Africa. Mogo Kenya has established itself as one of the leading fintech asset financing businesses in Kenya, focusing on motorbikes (both fuel-powered and electric), tuk-tuks, and cars.

The primary markets for Mogo Kenya’s operations are in Kenya itself, where motorbikes, tuk-tuks, and cars remain essential modes of transportation and key contributors to the local economy. Mogo Kenya’s innovative approach to electric motorbike financing, in collaboration with suppliers and ride-hailing companies, aims to drive the adoption of climate-friendly e-mobility in the country, reducing carbon emissions and noise pollution.

By leveraging technology, such as automated processes and GPS tracking tools, Mogo Kenya ensures efficient management of the financed vehicle assets. The company also facilitates digital payments through mobile money wallets, enhancing convenience for its customers.

Mogo Kenya’s asset financing model empowers self-employed entrepreneurs and small business owners, allowing them to generate income and own valuable assets. This approach contributes to financial stability, economic participation, and the accumulation of tangible wealth.’

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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