MICROCAPITAL BRIEF: Tugende Borrowing $6m for Boda-boda (Motorcycle Taxi) Leasing in Uganda

Tugende, a leasing company in Uganda that specializes in motorcycle taxis, recently agreed to borrow USD 6 million from undisclosed investors to expand its operations. Tugende, which translates as “Let’s Go,” has 10 branches in the country. Since its launch in 2010, it has served 20,000 clients, of whom 8,000 have paid off their “boda-bodas” completely.

The requirements to lease a boda-boda include one year of driving experience, two personal guarantors and attendance at a series of training classes. According to Tugende, “When drivers own their motorcycles and stop renting, their take home earnings double.”

An undisclosed portion of the loan will not become accessible to Tugende until it closes a pending equity raise. Verdant Capital, which has offices in the Democratic Republic of Congo, Ghana, Mauritius and South Africa, is advising Tugende on both the loan and equity packages. Verdant Capital provides capital raising and financial advisory services as well as assisting in mergers and acquisitions.

Sources and Additional Resources

Verdant news item
https://mailchi.mp/verdant-cap/verdant-capital-finished-in-the-top-three-in-east-africa

Tugende homepage
https://www.gotugende.com/

Verdant homepage
http://verdant-cap.com/

Verdant profile on Tugende
https://verdant-cap.com/tugende-a-kampala-based-leading-provider-of-finance-leasing-for-motorcycle-taxis-and-other-income-generating-assets/

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