Moove, a Nigeria-based mobility fintech startup that provides seamless vehicle financing to drivers of ride-hailing platforms like Uber and other gig networks has raised $105 million in an oversubscribed Series A2 round to expand into seven new markets across Asia, MENA, and Europe over the next six months.
The Series A2 financing which comprises $65 million equity and $40 million debt was led by Speedinvest, Left Lane Capital – the lead investors from its Series A- and the latest. ventures with participation from AfricInvest, MUFG Innovation Partners, Latitude, and Kreos Capital.
This latest round is coming about seven months since Moove closed its $23 million Series A round and a month after the mobility fintech closed $10 million in debt financing. The round brings the total fundraising to $174.5 million. The startup launched was in 2019 by the British-born Nigerians, Ladi Delano, and Jide Odunsi to democratize vehicle ownership in Africa by providing revenue-based vehicle financing to mobility entrepreneurs.
Moove employs unique performance and revenue analytics to approve loans to drivers who have traditionally been denied access to financial services by integrating its alternative credit scoring system within ride-hailing, e-logistics, and instant delivery platforms. In six markets – Lagos, Accra, Johannesburg, Cape Town, Nairobi, and Ibadan – and three product categories – automobiles, trucks, and motorcycles – over three million trips have been performed in Moove-financed vehicles.
“Less than two years ago we discovered this huge need for mobility fintech and launched Moove. Having now surpassed over three million trips in Moove-financed vehicles across Africa, launched in six new cities, and connected thousands of ambitious mobility entrepreneurs to ride-hailing, e-logistics, and instant delivery marketplaces, we’re now leading this growing category within fintech,” Delano said.
“But there are still millions of budding mobility entrepreneurs in emerging markets across the world who have limited or no access to vehicle financing and marketplaces that are facing critical supply issues. With this new fundraise; we are well-positioned and well funded to help solve this global problem. We’re delighted to have the support of leading investors across the globe that will be integral in enabling us to take our Nigerian-born model to the world.” He added.
Drivers register on the site, are validated, and then trained and signed contracts with Moove in order to obtain loans to buy or rent cars. The firm registers these drivers on Uber’s platform (which is its only partner in Africa) and deducts weekly rental costs off their profits before distributing the remainder to their accounts. The loans are for 12 to 48 months, and when drivers pay them back (at an annual interest rate of 8 to 13 percent), they own the vehicles.
Moove, according to Odunsi, is working hard to provide revolutionary and impactful tech solutions to real-world challenges.
“The Moove model that we’ve pioneered in Africa providing revenue-based vehicle financing to mobility entrepreneurs can be applied anywhere in the world, which is why we’re excited to be expanding to new emerging markets in Asia and the MENA region. As we scale, we remain committed to empowering women, leading the electrification of the mobility space, and driving financial inclusion. These ideals are at the core of what we do as we continue to build a sustainable and impact-driven global business,” he said.
Julius Tichelaar, the partner at AfricInvest, reacted to the financing and expansion by saying that his firm was committed to helping and growing firms that will transcend their boundaries and become regional champions.
“Ladi and Jide have proven that Moove has the potential to transform the lives of millions of people across the continent and we’re delighted to be supporting them as they expand Moove in Africa and beyond into more emerging markets. Through the AfricInvest FIVE Fund, we’re incredibly proud to be joining Ladi, Jide, and, all the Moovers on their exciting journey of disrupting financial services.” He said.