Evaluating only Asaak’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. Documented cause: Market collapse.
Key Events Timeline
FOUNDING
Asaak founded in Kampala to offer asset financing for motorcycle taxis via mobile app.
FUNDING
Raised $30M in combined equity and debt to scale Uganda boda-boda loan book.
DOWN ROUND
Post-Ukraine war fuel hikes cut rider incomes; default rates on motorcycle loans surpassed 25%.
SHUTDOWN
Uganda operations largely wound down; company pivoted to Philippines and laid off local staff.
Full Analysis
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Documented cause
Asaak, a Kampala-based asset finance startup co-founded by Paul Rooks and Ralph Brereton offering motorcycle-asset loans to boda-boda riders, raised $30M in debt and equity. By 2022, Uganda's motorcycle taxi market was being disrupted by Safeboda's collapse and rising fuel costs post-Ukraine war. Default rates on motorcycle loans climbed above 25% as rider incomes fell. The company substantially downsized Uganda operations in 2023, pivoting to the Philippines and laying off local staff.
Lesson
“Asset-backed micro-lending to gig workers requires fuel price hedging or indexed repayment schedules.”