Tugende secures $780K to fill Uganda’s roads with motorcycle taxi drivers
Friday, February 6, 2015
With an interesting take on making profit through social good, affordable motorcycle startup Tugendehas announced that it’s closed a round of US$780 000.
The Ugandan-based company describes itself as a for-profit social enterprise that offers an affordable lease-to-own model to help motorcycle taxi drivers own bikes in 18 months or less. The business model seems pretty sleek and has in 2014 grew 300% to over 700 active customers.
“We know that across Uganda and many other emerging markets, motorcycles are driving economies forward by moving people and getting business done. From farmers needing to move produce to professionals stuck in traffic, demand for affordable transport solutions is high, and motorcycles are filling the gap.” said Tugende CEO Michael Wilkerson. “Perhaps more importantly, motorcycles provide hundreds of thousands of badly needed jobs in a region with massive youth unemployment.”
Tugende’s high level goal is to help high-risk borrowers in East Africa take control of their own income generating assets, even when they can’t access financing from mainstream options–a common problem for Uganda’s motorcycle taxi or “boda boda” operators.