Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Capital on the Frontier Measure Better Investing in Racial Equity Beyond Trade-offs Impact en las Americas New Revivalists
Local and Inclusive Climate Finance Catalytic Capital Frontier Finance Best Practices Geographies
Slack Agent of Impact Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Locavesting Entrepreneurship Gender Smart Return on Inclusion Good Jobs Creative economy Opportunity Zones Investing in place Housing New Schooled Well Being People on the Move Faith and investing Inclusive Fintech
Clean Energy Farmer Finance Soil Wealth Conservation Finance Financing Fish
Innovative Finance
Personal Finance Impact Management
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States
Subscribe Log In

OPIC backs Tugende with $5 million for lease-to-own motorcycle finance

ImpactAlpha, August 3 – Ugandan startup Tugende launched in 2013 to help motorcycle taxi, or “boda,” drivers finance the purchase of a motorcycle. Most drivers don’t have the cash to by a bike outright, but by owning their own bikes rather than renting them, drivers can double their daily take-home income. That can “can lift the whole household above the $2 a day poverty line,” Tugende founder Michael Wilkerson said.

Tugende: Financing Uganda’s Boda Bodas to Boost Drivers’ Livelihoods (Podcast)

Tugende has helped 12,000 boda drivers finance a motorcycle through their rent-to-own model, which takes about 20 months to payoff. Five thousand drivers have paid off their vehicles.

A $5 million loan from OPIC will allow Tugende to expand its boda financing to more drivers, who also receive safety, financial planning and customer service training from the company.

The financing round is the largest Tugende has raised since it launched. The company previously raised just over $1 million in early debt and equity rounds in 2013 and 2015 and last year, structured a unique receivable financing deal with Lendable.

You might also like...