MyNextCar (MNC), a key fleet partner for ride-hailing giant Bolt in South Africa, has raised $10 million in its first funding round. The investment, led by London-based asset manager Emso Asset Management, will fuel the expansion of Bolt’s low-cost service in the country.

The deal, supported by Bolt itself, along with South African impact investor E2 Investments and Assemble Capital, is a significant endorsement of MNC’s model of providing affordable vehicles to drivers on the Bolt platform. The capital injection will be used to add 1,500 new vehicles to MNC’s fleet, specifically for the ‘Bolt Lite’ category, which utilizes the compact and fuel-efficient Bajaj Qute.

This expansion is poised to substantially increase the number of drivers able to earn an income through Bolt, while also making rides more affordable for a larger segment of the South African population. To date, MyNextCar has enabled over 700 drivers to work on the Bolt platform. The company highlights that 43% of these drivers are young people and 4% are women, underscoring the initiative’s role in addressing youth unemployment and promoting gender equity in the transport sector.

Lerato Motsoeneng, Senior General Manager at Bolt South Africa, described the investment as “a vote of confidence in a model that is helping reshape South African transport by offering accessibility and affordability.”

For Emso Asset Management, this investment marks another foray into the African mobility sector. The firm has previously provided financing to Moove, a mobility fintech that offers vehicle financing to ride-hailing drivers across the continent. E2 Investments’ participation aligns with its mission to back ventures that create employment opportunities for young South Africans. The specific interests of Assemble Capital in this deal have not been detailed.

The growth of low-cost ride-hailing options like Bolt Lite has not been without friction. The service, with its significantly lower fares, has faced opposition and, at times, violent hostility from traditional minibus taxi operators who view it as a threat to their livelihoods. These challenges have previously made lenders cautious.

However, this new funding from a notable institutional investor is seen as a crucial step in overcoming these hurdles and validating the business model. A spokesperson for MyNextCar stated, “This funding isn’t just about adding cars, it’s about changing lives. At MyNextCar, we’re committed to creating opportunities that empower South Africans to drive their own success stories.”

The planned rollout of 1,500 additional vehicles over the next year is expected to significantly strengthen Bolt’s position in the budget-friendly segment of the market, a key battleground for ride-hailing companies in emerging economies. This move signals a clear strategy to deepen its footprint in South Africa by catering to a price-sensitive consumer base.