Today, Dutch fund manager XSML announced its investment in Dalio SRPL. Dalio is an AVIS international licensee with an exclusive contract to operate in DRC. It was created in 2008 to engage in car rental activity. This investment, through XSML’s Central Africa SME Fund (CASF), is long term finance for Dalio SPRL and contributes to expansion plans in Kinshasa and Lubumbashi.
Kinshasa, Democratic Republic of Congo
The car rental market in Congo, DRC, is highly fragmented with mainly small local informal car rental companies. Dalio is one of the few car rental companies operating under an international brand applying international car rental standards.
Given increasing demand for car rental services in DRC, Dalio wants to expand its offering by opening a second office in Kinshasa, at the Memling Hotel, and open a new branch in Lubumbashi. XSML’s investment contributes to increase Dalio’s car fleet as well as contribute to the investment in additional offices in Lubumbashi and Kinshasa.
The Managing Director of Dalio, Mr. Moise Angel states: “With the financing provided by the Central Africa SME Fund, Dalio is now able to expand into Katanga province as well as open up an additional branch in Kinshasa. Dalio welcomes our long term partner CASF that shares our ambition of becoming the premier car rental service company in Congo.”
Marcel Posthuma, Managing Partner at XSML says: “With an increasing number of flights arriving in Congo DRC, we expect increasing demand for car rental services. As the car rental market is highly fragmented with low quality service providers, CASF is keen on supporting an established high quality car rental service operator like Dalio. As an AVIS licensee in Congo, our aim is to offer country wide car rental services of high quality.”
Dalio is the thirteenth investment made by CASF and its tenth investment in DRC. CASF is an investment fund investing in small and medium-sized enterprises in the Democratic Republic of Congo and the Central African Republic. The fund is based on the belief that sustainable economic development in the fast growing markets of DRC and CAR can be achieved by encouraging entrepreneurship. Currently, many opportunities in these countries remain unexploited due to the lack of risk capital and support. By stimulating entrepreneurial endeavors jobs and income are created. CASF is a USD 19m fund with 80% allocation to DRC and 20% in CAR. CASF provides risk capital with an investment size ranging from USD 100,000 to a maximum of USD 500,000. Investors in CASF are IFC, FMO and the Lundin Foundation.
About Dalio SPRL
Dalio SPRL started in 2008 as an exclusive licensee of AVIS international in DRC. Dalio offers reliable car rental services with drivers for both short-term as well as long term rental at international car rental standards. Dalio’s modern up to date fleet of cars offers its customers a wide range of vehicles of choice and seeks to diversify its services offering including luxury rentals, bus & van hire and commercial vehicles. In addition to its branch on Boulevard 30 Juin in Kinshasa, its new branch in Lubumbashi and the new office in the Memling hotel in Kinshasa will help increase ease of access for Dalio’s customers to its car rental services.
XSML is an independent private equity fund manager with a focus on frontier markets. While building and managing funds for these markets, XSML, eXtra Small Medium Large, aims to help grow small businesses into medium and large enterprises. XSML was founded in 2008. The managing partners have an extensive background in emerging markets in the areas of asset management, corporate and development banking and corporate restructuring. Our experience has shown that demand for finance from small and medium sized enterprises (SMEs) remains largely untapped despite increased interest in frontier markets from international investors. XSML bridges this gap between international investors and SMEs in these markets.