Drive45's triumphant win with the ₦2B Cascador is invigorating auto access across Africa
In a significant move for the Nigerian automotive industry, Seyi Adefemi's Drive45 has secured a ₦2 billion investment from Cascador, marking the largest single award in the program's history. This injection of funds will unlock faster scale for the company, removing the limitation of retained earnings covering equity portions for financing partners.
The funds will be used by Adefemi to address Nigeria's mobility problem at scale, as Drive45 aims to double its monthly recurring revenue to ₦240 million over the next 60-90 days, pushing annual revenue towards ₦2.8 billion.
Established in 2016, Drive45 has been a game-changer in the Nigerian market, offering a rent-to-own vehicle platform that allows customers to own vehicles after renting for three to six years. The company acts as a bridge between Original Equipment Manufacturers (OEMs) and clients, paying OEMs in full upfront while offering flexible financing to clients.
Drive45's model converts capital expenditure to operating expense, flattening unpredictable fleet costs into manageable monthly payments. The company has recorded no payment defaults in three years and operates over 200 vehicles nationwide, serving blue-chip clients such as British American Tobacco, Olam, PZ Industries, and Eko Electricity Distribution Company.
Approximately 75-78% of Drive45's fleet consists of utility vehicles directly tied to clients' revenue generation. This focus on enterprise clients has generated an annual revenue of ₦1.5 billion for the company over the past three years, without the need for a marketing budget.
With the new investment, Drive45 is now planning geographical expansion to Port Harcourt, Abuja, Kano, and Kaduna, Nigeria's key commercial centres. The company is also considering regional expansion into West Africa, particularly Ivory Coast, due to its stable currency.
In addition, Drive45 is preparing to enter the B2C market, with 99.5% of current revenue coming from enterprise clients. This move marks a significant shift for the company, as it establishes its first dedicated marketing team to drive growth in the consumer market.
Drive45's asset-agnostic enablement model remains relevant regardless of propulsion technology, including Compressed Natural Gas (CNG) and electric vehicles. The company's disciplined approach, robust credit assessment and risk management practices, and focus on customer trust and service quality have positioned it well for this next phase of growth.
With Drive45's sights set on profitability by Q4 2025, the future of the Nigerian automotive industry looks promising with this innovative player in the field.
[1] Source: TechCabal
Drive45, with its focus on addressing Nigeria's mobility problem, will allocate the new investment towards scaling its operations. This expansion will see Drive45 entering the B2C market and venturing into regional markets, such as Ivory Coast, while also planning geographical expansion to major Nigerian cities. Apart from this business growth, Drive45 remains dedicated to its sports utility vehicles, which primarily support clients' revenue generation.
