Nigerian-based mobility fintech company, Moove, has successfully closed its series A2 funding round, raising $105m.
The company, which was founded in 2020 by British-born Nigerians Ladi Delano, and Jide Odunsi, provides revenue based financing for drivers of ride-hailing companies like Uber, and Lori, to acquire their own vehicle.
The series A2 funding had participations from investors like Speedinvest, Left Lane Capital, and thelatest.ventures. Further participations came from investors like AfricInvest, MUFG Innovation Partners, Latitude, and Kreos Capital.
According to Moove, the funds realized would be expended on scaling the company’s expansion into Asia, Middle East and North Africa (MENA), and Europe. The expansion is scheduled to be achieved within the coming months.
“At Moove, we are working hard to create disruptive and impactful tech solutions to solve real-world problems. 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,” co-founder, Jide Odunsi said.
Moove target markets with low access to credit. The company provides financing to its customers to purchase brand new vehicles, while they pay back with a percentage of their weekly revenue.
The company noted that it has experienced remarkable growth in Africa, with the vehicles purchased using Moove’s financing completing more than 3 million rides, and covering over 25 million kilometres.
“At Moove, we have enabled over 3 million trips in Moove-financed vehicles across Africa, launched in six cities and connected thousands of mobility entrepreneurs to marketplaces. But there are still millions of budding entrepreneurs who have limited or no access to vehicle financing. We’re delighted to have the support of leading investors across the globe who will be integral in enabling us to take our Nigerian-born model to the world,” co-founder and co-CEO Ladi Delano, said.
In August, 2021, Moove mobility raised $23 million in its series A funding round, and $10m in its seed funding round.
Speaking on the series A2 fundraise, Julius Tichelaar, Partner at AfricInvest, said:
“At AfricInvest, we are focused on supporting and growing companies that we believe will go beyond their own borders 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.”
Since its launch two years ago, Moove said it has since expanded into seven African cities: Lagos, Accra, Johannesburg, Cape Town, Nairobi and Ibadan.
Per reports, private vehicle ownership is rare across the African continent. Compared to Europe with 92% vehicles purchased through mobility financing, Africa has fewer than 5%. Vehicle ownership is also less than 44 cars per 1,000 people, compared to 640 per 1,000 in Europe.
Moove noted that it will not be investing on cheap combustion engine vehicles, but quality vehicles. The company said it would ensure that at least 60% of its vehicles being either hybrid or electric vehicles.