Moove, an innovative African mobility fintech that provides vehicle financing solutions to ride-hailing drivers and gig economy participants, announced a new injection of $76 million in its funding round. This latest investment comprises:
- $28 million in equity sourced from new and old investors. This process was spearheaded by Mubadala Investment Company.
- $10 million in venture debt from accounts overseen by BlackRock.
- An additional $38 million accumulated over the last year, which had been undisclosed till now.
Following this influx of capital, Moove’s valuation now stands at an impressive $550 million. The company’s funding journey commenced with a Series A round in 2021, amassing $23 million. Then, in the subsequent year, they raised a whopping $105 million in the Series A2 phase. To date, Moove’s fundraising activities have culminated in a total of $325 million, split between $150 million in equity and over $175 million in debt.
The Moove Model
Established in 2020 in Lagos, Nigeria, Moove was founded by co-CEOs Ladi Delano and Jide Odunsi. The company revolutionizes vehicle financing by offering flexible loan structures for potential drivers who wish to enter the ride-hailing sector. Moove’s proposition avoids traditional borrowing routes, such as from vehicle owners or banks. How does it work?
- Drivers register on Moove’s platform.
- Following verification, they undergo training and sign contracts with Moove, allowing them to obtain loans for purchasing or leasing vehicles.
- Moove, partnering exclusively with Uber and other gig platforms like Glovo, Kobo360, and Swvl, integrates these drivers into their systems.
- A portion of the drivers’ earnings is then earmarked for weekly loan repayments before the remaining balance is transferred to their respective accounts.
- Loans span between 12 to 48 months, carrying an interest rate of 8% to 13%. On completing their payments, drivers gain full ownership of their vehicles.
Global Reach and Ambitions
Originating from Lagos but now headquartered in Amsterdam, Moove has spread its wings, establishing a presence in 13 cities spread across Africa, Europe, the Middle East, and Asia. Their global footprint extends to countries such as Nigeria, Egypt, South Africa, Ghana, Kenya, the U.K., India, and the UAE.
Highlighting the company’s achievements, Delano stated, “We’ve crafted a Nigerian solution for a globally acknowledged issue. This gives us not only the chance to tackle vehicular financing challenges in Africa but also to introduce this Nigerian solution to the entire world.”
The recent funding will primarily be channeled toward fortifying Moove’s standing in these markets. Their partnership with Uber has already crowned them as the most extensive vehicle supplier across EMEA. Notably, in the UAE, Moove, despite being relatively new, already operates the region’s largest EV fleet measured by service hours on the Uber platform.
Future Plans and Controversies
Co-CEO Delano has ambitious plans for Moove’s future, targeting profitability across multiple markets including the UAE, India, U.K., and South Africa. However, their journey hasn’t been without hurdles. Previous months saw a company-wide “dismissal,” and in Nigeria, there were reports of drivers’ vehicles being seized due to loan defaults.
Yet, such incidents haven’t dissuaded investors like Mubadala, who believe in Moove’s potential. Faris Sohail Al Mazrui, from Mubadala, who is now joining Moove’s advisory board, expressed his optimism, stating, “Moove has built a scalable tech platform serving mobility entrepreneurs globally, targeting a previously inaccessible market that holds immense potential.”
Both Moove and its investors remain steadfast in their commitment to revolutionizing the vehicle financing landscape and ensuring the firm’s profitability in the near future.