Metro Africa Xpress (MAX), a Nigerian mobility financing startup, recently underwent a restructuring that led to the layoff of approximately 150 employees, constituting 30% of its workforce. The company is shifting its focus to financing electric vehicles (EVs) exclusively, with plans to finance 120,000 EVs across Nigeria, Ghana, and Cameroon.
The decision to downsize was necessary for MAX’s transition to financing EVs only. Previously, the company offered a mix of electric and internal combustion engine (ICE) vehicles, utilizing a rent-to-own model with daily subscription fees.
Although the layoffs were implemented with measures to support affected employees such as health insurance and job placement assistance, the exact number of jobs affected was not disclosed. The terminated employees were informed through email, citing performance reviews as the basis for the decision, although no monetary severance packages were provided.
In addition to the layoffs, MAX has introduced cost-saving measures like reducing energy consumption and generator usage at its offices to minimize its carbon footprint. The company aims to invest significantly in energy sources to power its business locations and battery swap stations.
Partnering with renewable energy and impact investment firm PASH Global, MAX invested $10 million to establish a network of EV charging stations across urban centers in Nigeria. The company, which previously manufactured its electric motorcycles, now sources them from original equipment manufacturers (OEMs) like Spiro, with each vehicle costing around $900.
Since its inception in 2015, MAX has raised approximately $63 million through a mix of equity and debt financing to support its growth. The startup has undergone strategic pivots over the years, evolving from a delivery service to ride-hailing and now focusing on vehicle financing to adapt to the changing mobility landscape.
Editor’s note: The article has been edited to reflect that Adetayo Bamiduro and Chinedu Azodoh are the only co-founders of MAX. Guy-Bertrand Njoya, previously listed as a co-founder, served as CFO until May 2023.