Eleving Group raises USD 7 mln to expand the business in Kenya
Global fintech company Eleving Group has raised USD 7 mln from the Verdant Capital Hybrid Fund to boost the vehicle financing business and the introduction of sustainable mobility products in Kenya.
Both parties have completed a dual-tranche investment comprising a subordinated loan and a senior secured loan. According to the company, the investment will be made available to Mogo Auto Limited (Mogo Kenya), a subsidiary of the Group, and is intended to expand the company’s vehicle financing portfolio aimed at increasing mobility alternatives for self-employed and SMEs.
“Mogo Kenya has created a more sustainable mobility alternative for local entrepreneurs – electric motorcycles or e-bodas, which were previously almost inaccessible to the majority of the population due to limited funding opportunities. Today, small entrepreneurs, by using Mogo Kenya’s product enjoy cheaper operating and lower maintenance costs, which increases their level of income from doing their business. In addition, financing electric motorcycles contributes to reducing CO2 emissions and noise levels in urban areas where internal combustion engine-powered vehicles still dominate. The market for e-bodas is still small, but we expect to see a significant shift this year, with around 1000-3000 e-bodas on the road by the end of the year. We know that the future of mobility will be electric and together with Verdant Capital we are taking the first steps to facilitate this transition in Kenya,” said Modestas Sudnius, CEO of Eleving Group, about the investment raised.
Sudnius adds that this is the first investment of its kind in the company’s history designated for primarily developing sustainable mobility products in Kenya. Verdant Capital Hybrid Fund invests in companies that promote inclusive economic environments in African countries and aim to support financial institutions that work with SMEs and the self-employed segment, thereby creating new jobs and livelihood opportunities for economically vulnerable groups.
Mogo Kenya is one of the leading asset finance companies in the country. It focuses on financing motorcycles, tuk-tuks and cars, which are essential tools for mobility and income making. In the electric motorcycle segment, the company partners with Estonian Bolt, one of the world’s leading transport services platforms. The hauliers and food deliverers on the platform are one of the main self-employed groups through which electric motorcycles are currently being introduced.