Motor Africa, an IOT infrastructure and mobility startup based in Nigeria, has partnered with OnePipe, a fintech infrastructure provider, to offer credit and payment services to mobility entrepreneurs in Nigeria.
The collaboration has launched a lending-as-a-service (LaaS) platform, which provides working capital to mobility entrepreneurs for purchasing genuine spare parts, financing car repairs, vehicle and personal insurance, smartphones, and personal and family welfare support needs.
Functions Of The LaaS Platform:
This LaaS platform generates analytical telemetry and remittance income data that helps registered lenders make informed lending decisions while ensuring seamless credit repayments. The platform enables mobility entrepreneurs to access an overdraft facility to address their financing needs. According to the CEO of Envio Logistics Inc, Sylvester Chude, who has been an active participant in the mobility industry, partnering with OnePipe will help facilitate automatic payout settlements to vehicle owners and lending partners.
The African commercial mobility market is estimated to be worth $150 billion, and it is expected to grow at 8.5% between 2018 and 2023, according to a report by the AfDB. Motor Africa and OnePipe aim to address the challenges faced by African mobility entrepreneurs in obtaining working capital financing by leveraging their partnerships.
Background Information
Motor Africa, a trading name of Envio Logistics Inc, has activated more than 2,000 vehicles on its platform and plans to enable vehicle owners who currently lease their cars to verified drivers on e-hailing and local transport services to access credit services. The platform manages driver repayments to the vehicle owner and provides car maintenance oversight at partnered workshops.
Founded by Sylvester Chude, Motor Africa uses connected vehicle data and accurate data resources to transform the mobility experience in Africa. The startup offers services in Lagos, Abuja, Ibadan, Benin, and Portharcourt and plans to announce more locations in the second quarter of 2023.
Conclusion
The Motor Africa application, available on the Google Play store and Apple Appstore, allows mobility entrepreneurs to register their vehicles, pay a vehicle and activation fee of N15,000, and instantly receive an overdraft wallet credit of N600,000. The platform is also open to fleet operators who have previously leased cars to drivers for various mobility services.
The LaaS infrastructure, which utilizes hybrid telemetry IOT systems, enables lending partners to create loan products with interest rates and repayment terms and manage credit requests, automatic underwriting, cash disbursement, and repayment collection. The intelligent repayment collection service allows credit subscribers to make repayments via bank transfer to a dedicated repayment wallet before the due date. In the event of repayment default, the system will automatically disable the engine of the collateralized vehicle and share the geo-location with Motor Africa recovery agents.
The Motor Africa service is ideal for hosts leasing cars for e-hailing and local last-mile transport services, drivers seeking cars on short-term lease or hire purchase, and financial institutions offering drive-to-own services or lending. The partnership between Motor Africa and OnePipe provides a unique blend of credit and payment services that will enable mobility entrepreneurs in Nigeria to access working capital and drive growth in the commercial mobility market.
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