Investment

Moove raises $23 million in Series A funding to expand into new markets

Founders of Moove

In a Series A funding round led by Speedinvest and Left Lane Capital and joined by DCM Ventures, Clocktower Technology Ventures, thelatest.ventures, LocalGlobe, Tekton Ventures, FJ Labs, Palm Drive Capital, Roka Works, KAAF Investments, Spartech Ventures, Verod Capital Management, Kepple Africa Ventures, Class 5 Global, Future Africa, and Emso Asset Management, Moove Africa has secured over $23 million in investment. The company also raised over $40 million in debt financing. These successes see total funding in the African mobility company rise to over $68.2 million, and would enable them to drive further their goal of democratizing vehicle ownership across Africa.

With well over a billion people having limited or no access to vehicle financing in this part of the world, a number of startups are looking at ways through which they can help to bridge this gap. According to Mordor Intelligence, Africa only contributes about 1 percent of new car sales globally. Due to the reduced purchasing power of customers in Africa, very few persons are financially capable of making purchase of a new car at once. In spite of this, buyers have little or no other alternatives with which to mitigate the financial burden of acquiring a car. Just this year, Bolt had announced its new vehicle financing scheme that would enable drivers on their platform to get access to a car for as low as ₦15,000 in weekly installments. Moove is even more interested in making opportunities out of these challenges through its dynamic business model that unites vehicle supply with asset-financing. Mooves financing model, however, aims at providing loans to its customers through the sale of new vehicles, of which the purchase is financed up to 95 percent within five days of registration. Moove customers are then free to choose to pay back their loans over either of a 24-, 36-, or 48-month period, using a percentage of their weekly revenue.

Founded by Ladi Delano and Jide Odunsi, Moove is intent on solving the gap in accessing finance to buy cars that people in Africa grapple with. Instead of just targeting individuals generally, who may lack the financial strength to pay back on the loans, the startup targets drivers who would use the opportunity to work while growing revenue to offset their loans. At the same time, they would be contributing positively to the creation of jobs. Also, by plugging into ride-hailing and logistics platforms, the company would be able to better identify prospective borrowers, with a capacity to make repayment, through a credit-scoring system that leverages on user metrics. In sub-Saharan Africa, Moove is Uber’s exclusive car financing, and vehicle supply partner.

Despite only just starting in 2019, Moove has scaled remarkably with headquarters in the Netherlands, and growth across Lagos, Accra and Johannesburg. The company has also recorded about 60% growth month-on-month since 2020.

As General Partner at Speedinvest, Stefan Klestil, says,

Proud and excited to back Ladi Delano and Jide Odunsi in their quest to revolutionize mobility in Africa. Their enthusiasm and determination were contagious starting from our very first conversation. For them, it’s not only about the opportunity to build a massive business across Africa, but about creating massive opportunities for its drivers/mobility entrepreneurs. As one of the leading early-stage Fintech investors in Europe and beyond, we at Speedinvest are particularly interested in the unique opportunity to embed financial services into the Moove platform as an integral part of its business model.

This new funding will enable the startup to grow into new markets, and give them the financial muscle to develop and launch new products and services towards gaining a greater share of the market. In this vein, the company looking at transiting to hybrid and electric vehicles, which will reduce the carbon footprints and pollution in Africa. To make this affordable for the average Uber driver, the company intends utilizing a credit-led model in getting drivers to access vehicle financing. With this in view, Moove is set to increase the opportunities that it offers drivers to easily gain access to financing for their vehicles. There is a lot to look out for in terms of how Moove will grow its relevance in the market, and broaden its value offerings to customers.

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