Moove Africa, a Nigerian-born global mobility fintech startup, announced on Thursday that it has received $20 million in funding from South Africa’s Absa Corporate and Investment Banking (CIB) to expand across the continent. The funding is the fintech’s first with an African bank, bringing Moove’s total fund raised in equity and debt financing since its inception in 2020 to $200 million.
Morne Visagie, Head of Structured Asset Finance at Absa Corporate and Investment Banking (Absa CIB), expressed his delight in the deal’s completion in a press release.
It “has been an exciting journey over 18 months. This transaction enables the conventionally unbanked to gain access to finance, enjoy the benefits of their efforts and sustainably build a brighter future,” the release reads in part.
Just last month, the mobility financing platform secured $20 million in debt financing from the British International Investment company, after announcing a $105 million debt and equity funding in March to expand its presence in seven new markets in Asia, Europe, the Middle East, and North Africa (MENA).
The fintech intends to broaden its offerings and consolidate its operations in South Africa. “Moove has experienced rapid growth since its initial launch in South Africa in Q4 2021, and this latest funding will allow the startup to strengthen its product offering and create more jobs.” … Moove will continue to scale its revenue-based vehicle financing model in South Africa, creating more opportunities for mobility entrepreneurs to earn a living while owning a vehicle,” according to the release.
Ladi Delano and Jide Odunsi founded Moove in 2019 as a direct response to a problem that over 2 million African mobility entrepreneurs face: a lack of access to vehicle financing. Moove was founded in Lagos to address this issue and has since expanded to six African cities. It is now bringing our revenue-based financing model to millions of mobility entrepreneurs in emerging markets around the world who have little or no access to a vehicle or vehicle financing.
The mobility space in Africa remains very fragmented, with most informal actors. With over 1 billion Africans having limited or no access to car financing, the continent has the lowest per capita car ownership rate. Despite this, the sector represents an opportunity, according to fintech, which currently operates in 13 cities across three continents.
“Moove has emerged as part of a new generation of African-born fintechs to lead the charge in the mobility fintech’ sector,” according to the press release. “This white space addresses the continent’s acute vehicle financing problem and empowers mobility entrepreneurs to become more productive and successful.”
The fintech startup also claims to be Uber’s largest vehicle supplier in Europe, the Middle East, and Africa, and it has partnerships with other mobility marketplaces such as Glovo, Swvl, Sendy, and Kobo360 in ride-hailing, trucking and logistics, last-mile delivery, and mass transit.