Moove, an innovative African mobility fintech specializing in providing vehicle financing solutions to ride-hailing and delivery app drivers, has raised $100 million in its latest funding round. This capital will help fuel the company’s strategic expansion to target new markets.
While the leading investor remains undisclosed, insider sources have confirmed that Uber is one of the investors that pioneered the Series B round, marking one of its first investments in African-based startups.
Moove later confirmed Uber’s involvement on LinkedIn. New investors, including sovereign wealth fund Mubadala, also joined the funding round, valuing Moove at $750 million after the investment. This is an impressive increment from its previous valuation of $550 million in August’s round led by Mubadala.
Other notable investors who participated were; Mubadala, thelatest.ventures, AfricInvest Group, Palm Drive Capital, Triatlum Advisors AG, and Future Africa.
The company also acknowledged the Bank of America Business for their invaluable financial advice during this transaction. All these investors and supporters show the level of confidence they have in Moove’s vision and operational model.
Having accumulated $250 million in equity and $210 million in debt thus far, this new investment came at the right time as Moove gears up for expansion. Currently operating in 13 cities across six markets spanning Nigeria, South Africa, Ghana, the U.K., India, and the UAE, Moove aims to leverage the new funding to extend its revenue-based vehicle financing platform to 16 markets by the close of 2025.
Moove employs a dual-pronged strategy in vehicle financing, acquiring fleets of vehicles that are subsequently retailed to drivers through its platform. Through a sophisticated credit-scoring system, Moove facilitates financing for drivers, enabling them to procure new vehicles tailored for ride-hailing, logistics, and deliveries.
The vehicle options range from conventional models like Toyota and Suzuki to cutting-edge electric vehicles like Tesla and possibly BYD EVs from China. Drivers contribute a portion of their weekly earnings towards vehicle payments, ensuring a sustainable and mutually beneficial arrangement.
Uber’s decision to back Moove is a strategic move to secure a reliable pool of drivers for its ride-hailing platform, particularly in urban areas across eight African countries.
Despite regulatory challenges and intensified competition, Moove emerges as a trusted ally for Uber, bolstering its supply chain and operational resilience. The investment validates Moove’s business model and fortifies the symbiotic relationship between the two entities.
Furthermore, Uber’s goal of sustainable mobility aligns with Moove’s plans to use electric vehicles for a more sustainable mobility ecosystem. While Moove initially harbored ambitions of expanding its EV product line across Africa, logistical hurdles prompted them to look towards compressed natural gas (CNG) vehicles as an interim solution.
Despite all challenges, Moove remains committed to providing access to vehicle financing and creating economic opportunities for drivers across Africa. The Moove Care programs, fuel subsidy plans, flexible payment options, and many more are all Moove’s benefits you would get if you choose to work with them. It shows the company’s commitment to supporting its driver community.
While Nigeria presents its own set of challenges, Moove remains resolute in its commitment to the market, viewing its current struggles as transient obstacles on the path to long-term sustainability. With a clear roadmap and steadfast support for its customer base, Moove remains optimistic about navigating the complexities of the African mobility industry and emerging as a transformative force in the years ahead.