- MAX laid off 150 employees in January as it plans to finance 120,000 electric vehicles
- It said the decision was not made lightly
- MAX has begun implementing cost-saving measures to reduce its carbon footprints
Nigerian mobility financing startup, Metro Africa Xpress (MAX), laid off about 150 employees, representing 30 per cent of its workforce, in January.
The lay-off comes amid plans by the startup to finance 120,000 electric vehicles (EVs) in Nigeria, Ghana, and Cameroon, which is three times the combined number of electric and internal combustion engine (ICE) vehicles, motorcycles, and tricycles MAX financed in 2024.
MAX previously offered a mix of electric and ICE vehicles, some priced around N2 million in 2024, and used a rent-to-own model with daily subscription fees.
Decision was not made lightly – MAX
Per TechCabal, a spokesperson of the startup said the lay-offs were necessary for the company’s transition to exclusively financing EVs.
The termination of employment of the affected staff was effective immediately and no monetary severance packages were offered.
The company stated that the “decision was not made lightly.”
It appreciated affected employees and outlined support measures including health insurance and job placement assistance.
MAX focusing on cost-saving measures
The mobility financing startup has implemented cost-saving measures, including reduced energy consumption and generator usage at its offices, according to TechCabal.
The company confirmed that the measure is to minimise its carbon footprint to promote a greener environment.
It said, “We are investing significantly in energy sources to power our business locations and battery swap stations.”
MAX’s growth trajectory
MAX has recorded growth and evolved since its founding in 2015 by Adetayo Bamiduro and Chinedu Azodoh.
It started as a delivery service, later expanded into ride-hailing, and is now focusing on vehicle financing.
MAX’s growth trajectory has seen it partner with local and global investors, including a $10 million investment from PASH Global, a renewable energy and impact investment firm, in November 2024.
It has raised $63 million since 2019, including a mix of equity and debt financing, to support its growth.
In 2020, MAX floated a N10 billion multicurrency bond, securing a N400 million one-year fixed-rate note.
In a Series B funding round in December 2021, the company raised $31 million used to drive international expansion into Egypt and Ghana during the first quarter of 2022, followed by Francophone, East, and Southern Africa.
The capital also enabled it to deploy electric vehicles and charging infrastructure, and the provision of credit and financial products to over 100,000 drivers.
The startup’s 2022 raise saw the company secure $24 million through a private placement under SEC Rule 506(b), allowing it to raise capital from “sophisticated investors” without public solicitation.
Bento allegedly sacks tech team for protesting over delayed January salary
Meanwhile, TheRadar earlier reported that the ex-Chief Executive Officer (CEO) of Bento Africa, Ebun Okubanjo, sacked the company’s tech team following a protest over delayed January salary.
The laying-off of the 10-person team on Friday, January 31, comes a week after the company was called out on social media over allegations of financial impropriety including alleged forging of tax receipts and failure to remit tax and pension payments on behalf of clients.
