Mauritius-based Verdant Capital recently announced that it will lend USD 7 million from its Verdant Capital Hybrid Fund to Mogo Kenya, a subsidiary of Latvia-based Eleving Group, to fund two-, three- and four-wheeled vehicles – some powered by electricity – for self-employed taxi and delivery drivers. The loan is structured in two tranches, a subordinated loan and a senior secured loan.
Mogo Kenya, founded in 2003, finances smartphones and vehicles, and it connects its customers to financial literacy tools offered by its parent company. Among Mogo’s strategies is to partner with ride-hailing companies and promote the use of technology such as GPS tracking. As of 2023, the firm has funded 100,000 vehicles.
Eleving Group, founded in 2012, is a financial technology (fintech) organization offering consumer and vehicle finance in 15 countries in Eurasia and Africa. The group has about 2,600 staff members. During 2022, it reported net profit of EUR 28 million (USD 30 million) on a portfolio of EUR 293 million (USD 318 million).
Verdant Capital Hybrid Fund invests in inclusive finance for small and medium-sized enterprises (SMEs) in Africa via instruments such as “preference shares, holding company debt and subordinated debt.” As of 2022, the fund has a volume of USD 80 million, with a target of closing at USD 100 million by 2024.
Verdant Capital, a corporate finance firm operating from offices in Ghana, Mauritius and South Africa, provides capital raising as well as merger and acquisition advisory services to clients in Africa. These clients span the agri-business, renewable energy, business services, financial services and manufacturing industries.
By Anaya Jhaveri, Research Associate
Sources and Additional Resources
Verdant Capital press release
https://verdant-cap.com/verdant-capital-hybrid-fund-completes-a-usd-7-million-dual-tranche-investment-in-mogo-kenya/
Mogo Kenya homepage
https://www.mogo.co.ke
Eleving group homepage
https://eleving.com
Verdant Capital fund descriptions
https://verdant-cap.com/specialist-funds/
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