Tugende, a company specializing in leases for motorcycle taxis known as boda-bodas, recently raised USD 10 million in debt and equity capital from a group of investors, bringing the size of the firm’s balance sheet to USD 30 million. The one investor that has been identified is Mobility 54, a fund of Japan-based Toyota Tsusho Corporation that focuses on African markets.
The motorcycles financed by Tugende cost USD 700. Drivers’ leases require weekly electronic payments over the course of two years. These payments also cover training, safety equipment, and health and life insurance. As of October 2020, Tugende has 23,000 active clients and 12,000 more who have completed their leases and taken ownership of their vehicles. Going forward, Tugende plans to begin financing agricultural equipment, appliances and other types of vehicles.
Tugende, whose name translates as “Let’s Go,” has opened 17 branches in Uganda since its launch in 2012. In 2019, it expanded to Kenya, where it opened its first branch in the city of Kisumu.
Verdant Capital, which arranged the deal package for Tugende, provides capital raising and financial advisory services as well as assisting in mergers and acquisitions. Verdant Capital has offices in the Democratic Republic of Congo, Ghana, Mauritius and South Africa.
By Kate Finster, Research Associate
Sources and Additional Resources
Verdant Capital press release
https://verdant-cap.com/verdant-capital-completes-a-usd-10-million-debt-and-equity-financing-for-tugende/
Tugende homepage
https://gotugende.com/
Toyota Tsusho press release on Mobility 54
https://www.toyota-tsusho.com/english/press/detail/190822_004466.html
Previous MicroCapital article on Tugende
https://www.microcapital.org/microcapital-brief-motorcycle-taxi-leasing-company-tugende-of-uganda-raises-13m-looks-to-expand-its-boda-boda-finance-to-kenya/
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