‘We’re aware the boda market is built on trust’

Imagine you’re running an asset financing business in Europe and think, “Why not give East Africa a shot?” So you do the research, find the market, and discover real potential. 
That’s how Mogo Uganda, an asset-financing tech company, landed in Kampala. 
They started with car financing but soon spotted a larger opportunity in East Africa. As tech moguls like Elon Musk and Bill Gates remind us: success lies in solving problems.
According to Mogo Uganda’s chief executive officer (CEO) Mikhail Vydryn, "boda boda owners were underserved. They couldn’t get financing—no payslips, no bank statements, nothing. Banks wouldn’t consider them, especially young riders.”
He shakes his head, adding, “There’s even no data on them in credit bureaus, and so even if banks wanted to help, it’s nearly impossible.”
Traditional financiers move slowly, and these boda boda riders or what others would call motorcycle taxi drivers don’t have that luxury. 
As Mr Vydryn says, "Every day you’re waiting for a loan approval, you’re losing money."
The old-school approach forced riders to trek to bank branches, often with a guarantor in tow, paying for transport—and missing out on a day's earnings in the process.
“So we saw an opportunity,” says Mr Vydryn. “So many people were left out by traditional finance.”
Understanding boda riders
Before the company he works for entered the Ugandan market in 2019, fleet owners held the power. 
Wealthy individuals bought fleets of motorcycles and leased them to riders, who paid steep fees without ever gaining ownership. 
“Riders were just riders,” says Mr Vydryn. 
“They couldn’t become owners, couldn’t start their own small businesses. We noticed that and came high to solve it. We know how to work with these customers, understand the risks, and manage them,” he says, grinning, adding that the financier came up with an idea of charging interest based on risk. 
With fraud and theft issues in the market, lending here isn’t cheap or simple. 
“If you think interest rates are high, the market’s open—start your own company and charge whatever you want. But defaults and fraud are tough realities,” he emphasises.
He speaks confidently whilst telling Lunch with the DM the common mistake most Western companies in this business in Uganda make—trying to “fix” boda boda riders instead of understanding them. 
“They offered a loan in 24 hours or, in seven days with a ‘wonderful speech’, inviting riders in for life lessons. Boda boda riders don’t want that. They just want to start earning,” he says with a shrug.
With an easy-going charisma, he tells me about the fraud risks in this business that are even being marred in businesses like the one he works for when some asset financiers fail to manage their risks well.
“A loan officer might ask for Shs900,000 instead of Shs800,000, pocketing the difference. And yet simple mistakes like this can kill a business,” he notes.
Throughout our conversation, Mr Vydryn stresses that successful risk management is the key to the asset-financing business, especially for Mogo across the multiple countries it has operated in. 
It's not just about the model; it's about understanding the business—and the people behind it. 
"That’s how we started, and the model proved itself," he tells me with a confident smile.
Financing guide posts
To date, Mogo has financed more than 80,000 boda customers in Uganda, with more than half of them already paying off their loans and becoming bike owners. 
With 41,000 active customers and 3,000 loans issued each month, the fintech company is making impressive strides in the asset financing sector, with a Ugandan portfolio valued at $31 million. 
The company values Uganda’s regulated environment, where the recently dissolved Uganda Microfinance Regulatory Authority (UMRA) provides clear guidelines, making it easier to operate and mitigate risks—a rare investor-friendly edge in the region.
Naturally, I ask about Mogo’s interest rates and Mr Vydryn introduces me to the company’s scoring system.
“We assess payment behaviour using data,” he explains. “Low-risk customers might only need a Shs500,000 down payment, but high-risk clients may need up to Shs1.5 million upfront. It’s simple—more at the start lowers weekly payments, making the loan easier to manage.”
Here I get to know that interest rates vary by terms, product, and risk. Petrol bikes carry higher rates, while electric bikes are lower. 
“We reward responsible borrowers with lower rates,” he says, noting that rates range from 4.0 to 6.5 percent based on down payment and risk factors.
Intrigued about this whole idea about asset financing in Uganda, curiosity impels me to ask about what it’s like through the eyes of a foreign investor.
“It’s investor-friendly overall, even with challenges like fraud,” he shares. 
Making inroads
Mogo Uganda, a subsidiary of Eleving Group, an international FinTech company, recently listed on the Frankfurt and Nasdaq Baltics exchanges, but operated like a public company long before by issuing bonds. 
With electric bikes now gaining traction, firms like Mogo, Watu, and Tugende are set to grow in a market where big players—like Spiro, Zembo, and Gogo—are paving the way.
Electric automobiles are pricey—not just for consumers but also due to costly engineering, manufacturing, and research & development (R&D), requiring more affordable financing. 
This is where financiers, supported by development banks and global angel investors like Mogo, step in.
Mr Vydryn believes that for this sector to flourish, it needs unity, not hand-outs. This is something he responds to when I ask him if his sector needs some support from the government to flourish since electric automobiles are new in the country.
He tells me something that is completely understandable—it doesn’t make sense if the government starts building infrastructure for the private sector players because somehow it will look for a return on investment and this is capital intensive.
"With the government, it’s about one clear message. If Spiro, Zembo, and Mogo say different things, it’s just noise,” he says. “We need to talk, face the state of the industry realistically, and tackle the issues together.”
Challenges
The lack of universal standards, such as interchangeable batteries, remains a challenge. 
He points out that this could change, as players in the sector must come together to avoid fragmented growth.
For him, a shared infrastructure is vital to building momentum in Uganda's electric mobility sector.
“Can you swap a Zembo battery with a Spiro one? Not right now. Everyone’s working in silos. It’s like fuel stations overseas—charge any EV—but here, everyone’s pushing their own agenda,” he says.
On why collaboration is rare, Mr Vydryn sees it as a drive for dominance: “Sure, working together makes financial sense, but every player here wants to be number one, creating closed ecosystems with unique standards. They want their products, their rules. That’s wrong,” he adds.
Bothered by this, I try to ask him about what’s needed for instance to have rich infrastructure for instance for charging electric automobiles if the government is out of the picture. I’m compelled to ask because this is something that requires substantial investment, time, and hard work.
While traditional bikes like the BM100 are easy to fix, electric bikes present a more complex issue, with even maintenance resembling that of high-end vehicles like Teslas, yet on the rugged roads of Kampala. 
There are some services for electric vehicles, particularly for embassies’ electric automobiles but they are far from widespread. 
Importance of trust
The ecosystem of electric mobility in Uganda includes various components—policy, financing, infrastructure, the quality of bikes, spare parts, and service networks is still in development. 
And industry players like Mogo only pray for a better investment climate to allow them to flourish smoothly without lags.
While manufacturers and battery swapping companies might benefit from government incentives, companies like Mogo look not inclined to those handouts. 
Instead, they desire fair, stable policies that are designed for long-term success rather than short-term gains.
As Mogo’s team believes, providing additional support can sometimes weaken the industry. Strong players should rise to the top through hard work and innovation. 
The company’s rapid growth demonstrates just that. It has issued the highest number of electric bikes in Uganda and has ambitious plans for further expansion in 2025. 
Unlike some competitors who rush to scale, Mogo understands that the boda boda market is built on trust, not volume. 
Mr Vydryn says that word of mouth is powerful in this community. Riders trust the bikes they know and trust and these are people who aren’t accustomed to switching from one brand to another. 
But he does know for sure that building that trust takes time. It’s a step-by-step process—introducing electric bikes gradually to different towns, stages, and areas. 
With each step, the goal is to work closely with customers, addressing their concerns and solving their problems. 
For instance, when a Spiro bike financed by Mogo gets into an accident, the company steps in to cover repairs. This is no small expense, as spare parts are costly, and boda boda riders often can’t afford the immediate out-of-pocket costs. 
Yet, in the traditional business model, that wouldn’t happen; there would be no room for such generosity.
Despite these hurdles, Mogo remains committed to doing things right. The focus is on growing sustainably, with a deep understanding of the industry’s dynamics and the challenges customers face. 
It’s not about quick wins, Mr Vydryn says, but about building a trustworthy brand, step by step.
“The real competition isn’t between Spiro, Zembo, or Gogo electric. Instead, it’s against global giants like Bajaj and TVS. These are the companies that dominate the market, and understanding that is crucial for anyone entering the electric mobility space,” he adds.
While the electric buzz may excite the newcomers, Mr Vydryn’s approach is like a good navigator’s—focused, steady, and prepared for detours. 
He knows this isn’t just a game of speed, but of endurance in an unpredictable landscape.