ImpactAlpha, July 6 – In a country with high youth unemployment, the Sao Paulo-based Mottu rents out motorbikes on a weekly basis to make it easier for Brazil’s un- and underemployed boost their incomes.
Mottu raised a $30 million Series B round from Base Partners and San Francisco-based family foundation Crankstart and $10 million in debt capital from Verde Asset.
Mottu’s customers pay roughly $150 per month for the bike rental, or about half of a monthly minimum-wage income in Brazil. While the model does not support vehicle ownership, as other vehicle finance companies, like Uganda’s Tugende, do, Mottu founder Rubens Zanelatto says the company is serving a need in the market because most of its customers have no or bad credit and don’t qualify for traditional vehicle financing.
In addition to a bike, Mottu provides driver training for individuals wanting to become motorcycle delivery drivers, motorcycle maintenance, insurance and an app for picking up delivery gigs.
Zanelatto says the company’s model and services are aligned with the rapid uptick in Latin American e-commerce.
Mottu has 10,000 motorcycles in operation in Brazil and Mexico. It’s aiming to have 50,000 bikes in operation by next year.