South African based FlexClub raises $1.2 million from investors

FlexClub, a South African startup, raised $1.2 million through a seed round led by CRE Venture Capital. FlexClub is platform that provides investors the ability to purchase a vehicle, then connect that vehicle to an Uber driver who uses earnings to pay a weekly rental charge. The vehicle is managed and serviced by FlexClub and the fees generated provide fixed-rate interest income for the investor. The Uber driver is provided the option of buying the car after a period of 12 months. The company was established by Tinashe Ruzane who sees this as a great model to finance multiple asset classes in emerging markets where lending options are not readily available to Uber drivers. The founder indicated that the company already has $3 million (R44m) in assets under management in South Africa and plans to use the funding raised to increase its staff complement and expand through a partnership with Uber Mexico into the South American region.

 

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