Nigerian mobility startup Drive45 Mobility has secured a US$3 million senior debt facility from TLG Capital to finance its next phase of expansion, strengthen its vehicle fleet and extend its services to more customers across the country.
Founded in 2021, the company operates a flexible rent-to-own vehicle subscription model designed to help individuals and businesses access vehicles without bearing the burden of large upfront payments.
Drive45 currently has more than 170 active vehicles and says it has recorded no payment defaults during its five years of operation.
The new financing is expected to support fleet expansion and geographic growth, with Port Harcourt, Abuja, Kano, Kaduna and other major commercial centres identified as potential markets.
The transaction also involves a guarantee provided by Cascador in partnership with Morgan Stanley.
What is Drive45 and what does it do?
Drive45 Mobility is a Nigerian mobility-financing company focused on making vehicle ownership more accessible to individuals and businesses.
Rather than requiring customers to purchase vehicles outright with a large upfront payment, the company operates a flexible rent-to-own subscription model that allows customers to make manageable payments while using the vehicle.
Its services extend beyond vehicle financing, as Drive45 combines access to vehicles with insurance, maintenance, tracking, documentation and fleet management.
Since 2021, the startup has grown its operations to more than 170 active vehicles. The company says it has also maintained a record of no payment defaults over five years of operation.
Its model is therefore built around solving both the financial and operational difficulties associated with acquiring and managing vehicles in Nigeria.
The problem Drive45 is trying to solve
Access to vehicles can be expensive for Nigerian individuals and businesses, particularly when purchasing a vehicle requires substantial capital upfront.
For entrepreneurs, transport operators and businesses that depend on mobility, the inability to raise enough money to acquire vehicles can limit their ability to expand operations and generate income.
Drive45 is attempting to address this financing gap by spreading the cost of vehicle access over time while incorporating other essential services into its offering.
This means customers do not only receive access to a vehicle but can also benefit from insurance, maintenance, tracking and documentation.
The company’s approach effectively shifts vehicle acquisition from a large one-time financial commitment to a structured payment model.
As CEO Oluwaseyi Adefemi explained, “Mobility access is a capital business,” making access to financing central to the company’s growth strategy.
TLG Capital provides $3m growth financing
The US$3 million facility comes from TLG Capital, a private credit firm operating across Sub-Saharan Africa.
Unlike equity funding, where an investor typically receives ownership in a company, debt financing provides capital that the recipient is expected to repay under agreed terms.
The facility therefore gives Drive45 additional capital for expansion while creating a repayment obligation for the company.
Drive45 says the financing will strengthen its balance sheet and provide the capital required to increase its fleet and reach a wider customer base.
Adefemi said TLG “took the time to understand how our business works and structured their capital to fit the growth trajectory we know is possible.”
The transaction reflects the growing role of private credit in providing expansion capital to African businesses that require significant funding to scale physical operations.
The plans for expansion into major Nigerian cities
With the new financing available, Drive45 intends to increase its vehicle fleet, broaden its customer base and expand beyond its existing market presence.
The company has identified Port Harcourt, Abuja, Kano and Kaduna, alongside other major business hubs, as destinations for its planned expansion.
The strategy is significant because Drive45’s business model depends heavily on physical assets, expanding into a new city requires the company to deploy vehicles, establish operational capacity and acquire customers.
More vehicles could consequently allow the company to serve more businesses and individuals while generating additional revenue from its subscription and rent-to-own arrangements.
Adefemi said the financing would go “directly towards our plans to reach more businesses across Nigeria.”
The expansion will therefore test whether Drive45 can replicate its existing operating model across multiple markets while maintaining payment performance and service quality.
The support for inancing structure
The transaction also highlights the role of financial guarantees and business-support organisations in helping African startups access institutional capital.
According to Drive45, the debt facility combines TLG Capital’s private credit with a guarantee provided by Cascador in partnership with Morgan Stanley.
Cascador has supported Drive45 since the company completed its ScaleUp programme in 2024, providing financial and non-financial resources aimed at preparing the startup for investment.
Cascador CEO Trish Thomas said the partnership was particularly suited to Drive45 because the company had developed “real corporate demand” and demonstrated the integrity required to attract commercial capital.
For Drive45, the support appears to have extended beyond simply introducing it to potential financiers, helping the company strengthen its investment readiness and navigate the structure of institutional financing.
What this means for Drive45’s next phase
The new facility gives Drive45 an opportunity to move from relatively measured expansion to a more capital-intensive growth phase.
Its success, however, will depend on whether the additional vehicles generate sufficient and sustainable income to cover operating costs and the company’s debt obligations.
The financing is therefore not a grant or free capital; it is debt that must ultimately be serviced under the terms agreed with TLG Capital. That distinction makes execution particularly important as Drive45 expands into new cities.
The company will need to acquire customers, maintain its vehicles, manage insurance and operational costs and preserve its reported payment performance.
If successfully executed, the financing could help Drive45 build a larger national mobility platform.
As TLG’s Isha Doshi put it, the company has demonstrated “disciplined capital deployment to meet a clear market need,” and the next phase will put that discipline to a broader test.
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