Moove, a Nigerian mobility fintech startup, has secured a $20 million four-year structured debt funding from the British International Investment (BII) – (formerly CDC Group plc, Commonwealth Development Corporation, and Colonial Development Corporation), the UK government’s Development Finance Institution (DFI).
Ladi Delano and Jide Odunsi founded Moove in 2020 to give mobility entrepreneurs access to revenue-based financing in markets with low access to credit. Its customers, typically ride-hailing drivers, can purchase brand-new vehicles using a percentage of their weekly revenue.
This investment comes about three months since the mobility startup raised $105 million in March after raising $10 million in debt financing in February to put Moove’s total funding this year alone at $135 million and its overall funding at $194.5 million.
Moove, which started its operation in Nigeria, has accelerated rapidly within the country and has expanded into new African markets, including Ghana, Kenya, Uganda, and South Africa, as well as Europe, Middle East, and Asia markets. It’s also Uber’s exclusive car financing company in Africa.
BII announced the investment at a business reception in Lagos co-hosted by the British high commissioner in Nigeria, Catriona Laing, and BII chief executive Nick O’Donohoe to reiterate its continued ambition to scale up investment that will boost vital economic sectors in Nigeria. According to BII, Nigeria is its most significant investment market, boasting a portfolio worth $570 million through more than 100 businesses and 43 funds, collectively supporting almost 45,000 jobs across the country in 2020.
“In Moove, BII has a partner that aligns with our commitment to back dynamic tech-enabled businesses that can help accelerate impact in Nigeria by strengthening the country’s informal transport industry,” O’Donohoe said. “I am delighted that not only will BII’s investment help to create jobs and provide entrepreneurial self-starters with the means to own their vehicles, but Moove’s clear focus on gender diversity will foster inclusive economic opportunities for women, both within the company’s workforce and among its drivers.”
In a statement, Ladi Delano, co-founder and co-CEO at Moove, “We’re incredibly proud to welcome onboard a world-class partner such as BII, whose strategic support will play a key role in our mission to build the world’s largest integrated vehicle financing platform for mobility entrepreneurs.”
“With our new funding, we’re now in an even stronger position to use our technology and productivity data in creating a more inclusive financing ecosystem while also tackling the unemployment problem affecting over a third of Nigerians by generating the opportunity for more seamless and sustainable employment,”
Before now, DFIs mainly invested through private equity and rarely through venture capital. BII, for example, invested in Nigeria’s Capital Alliance Private Equity Fund I (CAPE I), managed by African Capital Alliance (ACA) and CardinalStone Capital Advisors Growth Fund, among others. It also invested in African-focused, early-stage-to-series-A venture capital TLcom. But now, DFIs have started dealing directly with startups: BII invested in Nigeria’s TradeDepot, TeamApt, and Kenya’s M-Kopa. Proparco, the French DFI, also invested in GOMYCODE’s $8 million series A.