MAX.ng taps Nigeria’s capital market for growth

MAX.ng, a German mobility platform, recently issued a 100 million dollar one-year fixed-rate series-one bond as part of its newly structured 110 billion private company bond program. The move marks a significant step for the company's expansion plans and signals a new method of funding for startups in the Nigerian mobility market. Guy-Bertrand Njoya, the Chief Financial Officer of MAX.ng, shed light on the transaction in an exclusive interview with CNBC Africa. The decision to tap into the capital market instead of opting for the traditional funding round for startups was strategic. Njoya explained that accessing the capital market allowed MAX.ng to diversify its funding sources and provide cost-efficient financing options for its drivers. By leveraging social finance, the company aims to pass on the benefits to its drivers, the ultimate beneficiaries of the capital raised. Despite the challenging timing amidst the pandemic, Njoya emphasized that the bond issuance was the culmination of a year-long process aimed at showcasing MAX.ng's capabilities in risk management, data analysis, and driver recruitment. The company's resilient business model and ability to navigate regulatory hurdles during the crisis instilled confidence in investors and stakeholders, underscoring MAX.ng's dedication to transforming the transportation sector in Nigeria and Africa. The successful bond issuance is part of a larger 10 billion naira private company bond program, with the recent 400 million naira bond series-one marking the program's launch. Njoya highlighted the innovative nature of the program, describing it as a framework that enables MAX.ng to issue bonds at regular intervals. This framework streamlines the fundraising process, significantly reducing the time required for future bond issuances and providing investors with a transparent investment opportunity. An integral aspect of the program is its securitization structure, which transforms illiquid assets such as motorcycles and tricycles into marketable securities. This innovative funding mechanism allows investors to access returns generated by MAX.ng's finance assets, creating an avenue for financial stakeholders to support and benefit from the growth of the transportation sector in Nigeria. Looking ahead, MAX.ng is poised to continue its transformation journey in the mobility space, with plans to leverage the private company bond program for future fundraising initiatives. The company's commitment to innovation, resilience, and sustainable growth positions it as a key player in revolutionizing transportation in the region. As MAX.ng embarks on its next phase of expansion, investors and stakeholders alike are encouraged to participate in shaping the future of mobility in Nigeria and beyond.