The Ugandan mobility fintech Asaak recently spread its tentacles to Latin America after it bought the Mexican asset financing business Flexclub. The fintech’s CEO suggested that his company’s successful and profitable microfinance business partly influenced the decision to acquire the Mexican startup.
Asaak’s Profitable Business
The Ugandan mobility fintech Asaak recently said it acquired car financing startup Flexclub Mexico for an undisclosed sum. According to one report, Asaak’s acquisition of the Mexican asset financing startup will potentially expose the Uganda-based startup firm to the Mexican microfinance market and the South African car rental market. Flexclub has reportedly pivoted away from the Mexican market.
Kaivan Sattar, the co-founder and CEO of the Ugandan fintech, suggested that his company’s successful and profitable microfinance business had partly influenced the decision to acquire the Mexican startup.
As explained in a Techcabal report, Asaak’s decision to acquire Flexclub Mexico might have been influenced by the fact that the same investor funds both startups.
“As active investors in both Asaak and FlexClub, simple.Capital() spotted an opportunity to procure the acquisition of FlexClub’s Mexican business by Asaak. We congratulate both management teams on the closing of this transaction which we believe has significant benefits for both Asaak and FlexClub,” Blake Musgrove, partner and Chief Investment Officer at Simple.capital, reportedly said.
Meanwhile, Tinashe Ruzane, the CEO and co-founder of Flexclub, said a decision to exit the Mexican market has enabled the startup to focus its efforts on the South African market.
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