Metro Africa Xpressa Nigerian startup in the mobility financing sector, laid off 150 employees, or 30% of its workforce, in January, according two people familiar with company operations. The cuts come at a time when MAX is launching plans to finance 120,000 Electric Vehicles (EVs) in Nigeria, Ghana, Cameroon – three times the number of electric and internal-combustion engine (ICE) cars, motorcycles, tricycles and other vehicles it financed by 2024.
According to a MAX spokesperson, the restructuring is necessary for the company to transition from exclusively financing EVs. Previously, MAX offered a mixture of electric and ICE cars, some priced at around N2,000,000 (about $1280) in 2024. It also used a rent to own model with daily subscription charges.
In an email, the company stated that “this decision was not taken lightly” and emphasized its appreciation for the affected employees. It also outlined support measures such as health insurance and job-placement assistance. MAX refused to comment on how many jobs were affected.
A laid-off employee told TechCabal the termination email was vague and referred to performance reviews, implying individual performance issues. “I didn’t realize it was a massive layoff until later,” said the employee, who asked to remain anonymous to speak freely. The terminations took effect immediately and no severance package was offered.
MAX has implemented cost saving measures beyond the layoffs. These include reduced energy consumption and generator use at its offices. According to a highly-placed staff member who asked to remain anonymous as they were not the spokesperson for MAX. The company confirmed the measures and stated that the goal is to reduce its carbon footprint in the interest of the environment. MAX told TechCabal in an email that they were investing heavily in energy sources in order to power their business locations and battery exchange stations.
In 2024, MAX, in partnership with PASH Global, an impact investment and renewable energy firm, invested $10 million to create a network of electric vehicle charging stations throughout urban centres in Nigeria.
MAX used to manufacture its electric motorcycles but now sources them from OEMs like Spiro. The highly-placed MAX employee told TechCabal that one vehicle can cost as much as $900. MAX’s expansion will require significant capital to reach its target of 120,000 cars.
MAX has raised $63 million in a mix between equity and debt financing to fuel its expansion. In 2020, the startup issued a N10billion multicurrency Bond ($22m at the time), from which it secured an N400m ($1m) fixed-rate one-year note. In 2022, the company raised $24 million through a private placement, under SEC Rule 506 (b), which allowed it to raise money from “sophisticated” investors without public solicitation. Raising debt financing allowed the company minimize dilution.
MAX, founded in 2015 by Adetayo Bamiduro & Chinedu Azodoh has undergone a number of strategic pivots. It began as a delivery company, expanded into ride-hailing, and now focuses on financing vehicles. This evolving strategy reflects how the company is adapting to the rapidly changing mobility environment.
Editor’s note: This article has been edited so that Adetayo Bamiduro, and Chinedu Azodoh, are the only MAX co-founders. Guy-Bertrand Njoya, who was listed as a founder previously, was employed as CFO until may 2023.
