African Mobility Fintech Moove Raises $76 Million to Expand Vehicle Financing Services
Nigerian mobility fintech company Moove has secured $76 million in funding to expand its vehicle financing services. The investment includes $28 million in equity from investors led by Mubadala Investment Company, $10 million in venture debt from BlackRock-managed funds, and $38 million from undisclosed sources raised over the past year. Moove provides vehicle financing for drivers of ride-hailing platforms like Uber and other gig networks. The company uses revenue-based financing to offer flexible options for drivers who want to enter the ride-hailing or gig economy without borrowing from car owners or taking bank loans. The company has raised a total of $325 million in funding, and this latest round values Moove at $550 million.
Founded in 2020 in Lagos, Nigeria, Moove provides drivers with access to loans to buy or rent cars, helping them join platforms like Uber and others. The loans have terms between 12 and 48 months, and drivers repay them with an 8% to 13% annual interest rate, eventually owning the vehicles. Moove has expanded its operations to 13 cities across Africa, Europe, the Middle East, and Asia, including countries such as Nigeria, Egypt, South Africa, Ghana, Kenya, the U.K., India, and the UAE. The company intends to use the new investment to further expand its presence and consolidate its position in these markets, where it is Uber’s largest vehicle supply partner in the EMEA region.
Opinion:
Moove’s successful funding round highlights the demand for innovative financial solutions in the African mobility sector. By addressing the lack of access to vehicle financing for gig economy drivers, Moove is positioned to make a significant impact on the continent’s growing gig economy. The company’s ability to secure substantial funding indicates investor confidence in its business model and potential for growth. As Moove expands its operations, it could play a crucial role in facilitating economic opportunities for drivers and contributing to the development of the African mobility ecosystem.