Kenya’s Mobius Motors, announced on Thursday that it has accepted a takeover bid from an undisclosed buyer, avoiding voluntary liquidation, Reuters reported.
Mobius, founded in 2011 by Joel Jackson after encountering Africa’s challenging roads while working for a forestry company in Kenya, announced earlier this month that it plans to wind down operations.
Mobius announced in a statement that “both parties are looking to close the transaction within 30 days,” without disclosing the buyer or the financial terms of the deal.
Mobius, which raised $56 million across five funding rounds, manufactured affordable SUVs aimed at small and medium-sized enterprises (SMEs) in infrastructure, agribusiness, and supply sectors.
However, Mobius has faced significant challenges in recent years, struggling with debt and high taxes. The company found that tax hikes in the East African country had rendered its business model unsustainable.
The owners considered relocating production to another country, but that option was dismissed due to the logistical challenges of moving the existing assembly line from Nairobi, the shareholder added.
Backed by investors like Britain’s Playfair Capital, Mobius was part of a broader initiative by investors and African governments to create jobs by establishing local vehicle manufacturers. Other companies in this movement included Uganda’s Kiira Motors, Ghana’s Kantanka, and Nigeria’s Innoson Motors.
At the same time, global automakers like Japan’s Toyota Motor Corp and Germany’s Volkswagen AG also increased their investments in markets like Kenya and Rwanda, aiming to capitalize on growing economies and rising consumer demand.
However, all these manufacturers faced the same obstacle: stiff competition from the influx of second-hand imports from abroad.
