MAX has successfully raised ₦400 million through a one-year fixed rate series 1 bond. The company is the first African mobility company to issue a bond under the Private Company Bond program.
Metro African Xpress launched in 2015 and has managed to raise $8.2 million in 4 previous funding rounds. The first successful round was in 2015, a convertible note of $100,000. Subsequent venture rounds took place in 2016, 2019, and 2020.
The series 1 bond is part of a $22 million (₦10 billion) bond for private companies. Despite the hard economic times, the bond was floated through a private placement and has received strong interest from both local and international fixed-income investors.
Adetayo Bamiduro, the co-founder and Chief Executive Officer at MAX explained the bond programme as a structured way to blend with its key mission of financing infrastructure mobility infrastructure across Africa. Proceeds raised from the bond will be channeled to fund the company’s asset financing program for two-wheelers, three-wheelers, and other vehicle classes across Nigeria. According to MAX, DLM Advisory arranged the transaction and bond programme.
Chinedu Azodoh, the Co-Founder and Chief Growth Officer at MAX detailed how the fully integrated and innovative approach of MAX’s technology is essential in demonstrating an ability to scale while managing a pool of drivers across 6 different cities.
Sonnie Ayere, the Group Chief Executive Officer at DLM Capital Group explained pointed out the role of the institution in facilitating innovative capital raising solutions to public, private, and sovereign entities.
Earlier this year, the startup faced difficult prospects after motorcycle ride-hailing was banned in Lagos. However, the company innovated by pivoting to transport and logistic delivery services. Presently the company has a presence in 6 Nigerian states.
MAX’s new program will ensure those ineligible to receive loans from banks can get various types of vehicles for commercial activities.