Product 1: Mobility Asset Tracking

1. Problem: Motorcycles are often resold to new owners, for whom it’s difficult to assess the bike’s mechanical condition and value - how was the bike handled by the previous owner and what road conditions did it endure? Paying too much for a depreciated motorcycle is a huge risk for Ugandans, whose annual income averages $1,000. More than 1 million motorcycles are on Ugandan roads today and their value cannot be accurately estimated without smart tracking.
2. Product: Every Asaak motorcycle has a GPS tracker that measures whether a driver brakes too suddenly, turns too sharply, etc. allowing us to generate a safety score for the driver that’s highly correlated with the asset’s depreciation. Accurately measure a motorcycle’s depreciation based on the quality of roads it traverses as well as the driver’s handling → get a fair value for the motorcycle for selling it, or borrow against the motorcycle at a fair interest rate by using it as collateral.
3. How it works: Using Stellar’s smart contracts, Asaak can accurately track the ownership of a motorcycle across multiple drivers as well as track the depreciation of the bike under each owner. Depreciation is calculated as a function of driver behavior observed through the GPS tracker.

Product 2: Zero-Fee Wallet

1. Problem: The Uganda Shilling (UGX) depreciates quickly compared to USD. Most Ugandan bank accounts pay 0% interest against 7.4% annual inflation. Our customers, boda drivers, would love to save money in a currency that doesn’t depreciate quickly. They may also need to send money abroad as some drivers are migrant workers.
2. Product: A mobile wallet that converts UGX into a more stable currency like USD/USDC so that the user’s savings do not depreciate quickly. The wallet will also support zero-fee payments to bank and mobile money accounts.
3. How it works: Use an on-ramp to convert UGX into USD/USDC and hold it in the Stellar wallet. Convert it back to UGX when the user wants to withdraw.

Business Context: Our target customers, African taxi (“boda”) drivers, live off the formal financial grid and do not exist in credit reference bureaus (CRBs) or government databases. They earn in cash and their informal borrowing behavior (e.g. a cash loan from a relative/friend) is not reported to CRBs. They have usually dropped out of school early and cannot access white collar jobs. The lack of a credit score makes it impossible for boda drivers to access traditional financial institutions.

Boda drivers use motorcycles to carry passengers and deliver packages, but most drivers do not own their motorcycles. Our core product, the motorcycle loan, helps boda drivers to formally own an asset for the first time in their lives and double their income. We also give fuel, smartphone, and personal loans as secondary products to boda drivers who have built a strong credit profile with us on the initial motorcycle loan.

Uganda’s 1 million boda drivers comprise almost 5% of the adult population. There are over 15 million boda drivers across Africa who collectively earn $39B income annually.

Asaak’s Traction and Business Case Validation:

• Originated $10M across 7,000+ total loans
• 15.8X revenue growth July '21 - July '22
• $3.15M+ ARR as of Aug. 2022
• Strong portfolio: 95% repayment rate
• Presence in 5 cities in East Africa
• $20M credit facility for scale in 2022
• Exclusive partnership with largest bank in Africa, Standard Bank Group
• Untapped $100B vehicle financing market (2% current penetration)
• Projected $20M+ ARR end of 2023

Technical Specifications for Product 1:

Asaak uses custodial Accounts for each client (driver) and unique Account+Asset pairs to represent each asset (motorbike). When the physical asset is transferred to/from Asaak, the virtual asset is transferred between Asaak's account and client's custodial account. Summary usage data is then stored on the bike Account as custom attributes, raw GPS data is stored centrally in Asaak's data warehouse but remains connected to the bike's Stellar Account ID. Asaak uses the data to assess the valuation of the bike at time-of-sale.

Future Extension of Products 1 & 2: Credit Score

Our motorcycle loan is payable by the driver in weekly installments over a period of 2 years. Observing the driver’s repayment behavior on the loan allows us to build a credit score for the driver. This credit score, plus the driver safety score from Product 1, could be sold by Asaak to other financial institutions wanting to lend to our drivers.

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