FlexClub (SA) Raises $1.2m

Ever heard of FlexClub? Its a South African startup that has successfully mastered the business of hire-purchase within the e-hailing sector. Using a simple financing model, FlexClub helps people who want to start a small business on ride-sharing platforms like Uber, Bolt and Lift buy cars via their online platform. FlexClubs caters to the needs of the majority of people, who don't have the kind of resources to attract funding from traditional lending institutions. People like e-hailing and taxi cab drivers. The startup was cofounded by Tinashe Ruzane and Marlon Gallardo, one time Uber employees, and Rudolph Vavruch. According to the CEO, Tinashe Ruzane, FlexClub is a gig economy investment platform thats creating new asset classes in emerging markets, chiedly cars. He envisions this as a model to finance multiple asset classes in emerging markets — where lending options are fewer for individuals who may not have credit histories or traditional forms of collateral to put up in order to secure loans. Users can signup to purchase a vehicle, get connected to drivers who pay a weekly rental and the drivers have an option to buy the vehicle after 12 months. FlexClub helps manage the investment, rental income collection, disbursement of funds to all parties, and maintenance of the vehicles. The startup generates revenue by charging a percentage of the weekly rental as commission. Today they have $3 million in assets under their management. FlexClub currently operates in South Africa and has relationships with major car dealers and e-hailing companies like Uber that operate in the region. These relationships, along with the years of experience and know-how the co-founders bring in from Uber, which have given them leverage to achieve fast growth, made them an attractive prospect for VCs like CRE Venture Capital, Montage and Savannah Capital to invest in.

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