Bolt and car finance firm Hakki Africa have partnered to deploy 1,500 vehicles over the next 18 months to drivers on Bolt’s platform via loan down payments and incentives based on their performance through Hakki Africa’s credit scoring system.
This partnership between Bolt and Hakki Africa provides the opportunity for vehicle ownership by making financing more accessible for a greater number of new and existing drivers on the platform.
In a statement sent to TechMoran, Linda Ndungu, General Manager, Rides said- ‘At Bolt, we are committed to empowering our drivers by improving their financial stability and overall well-being. Our partnership with Hakki Africa represents a significant step towards achieving this goal by providing accessible and sustainable vehicle financing options. This collaboration will not only enable more drivers to own their vehicles but also enhance their earnings, reduce operational costs, and foster a more prosperous driver community. Together, we are driving change and ensuring that our drivers can thrive in the ride-hailing industry.”
Most drivers on ride haling and gig-working platforms have no access to credit facilities from mainstream banks due to stringent criteria for securing loans, while they desire to buy and own cars, more often than not, they cannot qualify for bank loans, forcing them to rent vehicles at high costs. Over time, the rental fees often surpass the cost of purchasing a car, yet despite making continuous payments, they never gain ownership of the vehicle. This situation makes it difficult for them to improve their financial circumstances. It is on this premise that Bolt and Hakki Africa have come together in this collaborative venture, to enable drivers on its platform to improve their earnings by working towards car ownership.
In October 2023, Hakki Africa, a Japanese startup offering micro-finance services for cab drivers in Kenya raised about $10.6 million in the 1st close of its series B round led by SBI Investment with participation from QR Investment (by Hokkoku Financial Holdings), Deepcore, Hakobune, Music Securities in addition to debt from an undisclosed Japanese megabank and Hokkoku Bank.
The firm had earlier raised a seed round in December of 2020 (secured 30 million yen) and Series A round in March of 2022 (secured 220 million yen including debt). The raise in October 2023 brought their funding sum up to date to more than 1.83 billion yen (about $12.3 million) to offer a loan screening based on a cab driver’s credit rating, with points deducted for multiple debts based on the history of the M-PESA mobile money usage, and points added for stability of cab sales on a weekly basis, offering the opportunity to purchase a car.
Hakki Africa competes Moove which is backed by Japan’s Mitsubishi UFJ Innovation Partners and raised $10 million in debt recently.
“We are delighted to partner with Bolt in order to provide quality vehicle financing services to drivers on their platform. Our credit scoring system helps gig-workers, who previously couldn’t access financial services, to establish credit and receive loans,” said Yumeka Abe, Director at Hakki Africa.
Abe added that Hakki Africa consider’s the drivers as essential for Kenya’s economy and its growth. Drivers who take loans from them can own a car after three and a half years of repayments. Once they pay off the loan, they can increase their net income as drivers, sell the car to start a new business, or pursue other opportunities.