MICROCAPITAL BRIEF: Max to Boost Financing of Motorcycle Taxis for Okada Drivers in Nigeria with $3m Credit Line from VFD Microfinance Bank, Operator of VBank

Nigeria’s VFD Microfinance Bank, whose primary offering is the VBank online banking service, recently agreed to open a credit line for Max, a Nigeria-based provider of electric and conventional motorbike leasing and other services to taxi drivers. In addition to lending Max up to USD 3 million, the bank will offer Max’s okada drivers access to VBank’s financial services, such as loans, debit cards, and banking via text message and the WhatsApp service of US-based Meta.

Adetayo Bamiduro, the CEO of Max, reportedly said, “This collaboration is a key enabler for Max’s impact agenda for transport operators and commercial drivers in Nigeria. We are committed to providing independent commercial drivers with the solutions to their main pain points – and ensuring access to the formal financial system has long been something we wanted to bring to our drivers.”

Established in 2015, Max has 13,000 drivers, whom the firm reports earn an average of USD 5,000 per year. Among Max’s services are: (1) for drivers: lease-to-own financing, training to help drivers get licensed, and access to vehicle and health insurance; (2) for businesses: incoming, internal and customer-bound deliveries; and (3) to promote electric transport: retrofitting motorcycles to run on batteries and operating battery swap stations and battery charging stations.

VFD Microfinance Bank is a member of VFD Group, a Nigeria-based entity reporting 2021 profits of NGN 4.2 billion (USD 10 million) to end the year with total assets of NGN 107 billion (USD 260 million). Founded in 2009, the group has 41 holdings as of 2022, spanning the finance, media, energy, technology and real estate sectors.

By Sheen Gupta, Research Associate

Sources and Additional Resources

ThisDay article
https://www.thisdaylive.com/index.php/2022/04/22/firms-announcee-3m-partnership-to-drive-financial-inclusion-among-independent-commercial-drivers/

Max homepage
??https://www.max.ng/

VBank homepage
https://vbank.ng/

VFD Group homepage
https://vfdgroup.com/

VFD Group 2021 financial statements
https://vfdgroup.com/investor-information/

Apple App Store listing of VFD Microfinance Bank’s V app
https://apps.apple.com/ng/app/v-by-vfd/id1462870303

Google Play listing of VFD Microfinance Bank’s V app
https://play.google.com/store/apps/details?id=com.vfd.app

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