Moove, Lori to finance trucking, logistics in SSA
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Moove, an African mobility fintechs, has entered into an exclusive strategic business partnership with Lori Systems, a tech-driven logistics company that coordinates haulage across frontier markets with a view to drive down the costs of goods, democratise vehicle ownership in sub-Saharan Africa by providing revenue-based vehicle financing to mobility entrepreneurs as it hopes to offer versatile finance solutions to bridge the gap in truck financing for transporter companies and individual drivers.
According to the companies, the exclusive partnership is aimed at delivering access to affordable vehicle financing within Africa’s trucking and logistics industry where penetration for truck financing is lower than one percent.
By combining Moove’s unique revenue-based financing model and credit-scoring technology with Lori Systems’ data-driven logistics marketplace, both companies aim to increase the capacity of transporters to match demand across East and West Africa.
Moove, co-founded in 2019 by Ladi Delano and Jide Odunsi, and backed by leading venture capitalists, including Speedinvest and Left Lane Capital, as well as global institutions such as the International Finance Corporation (IFC), has raised a total of $68.2 million in funding to date.
Lori Systems, launched in 2017, is focused on digitizing logistics on the continent and has successfully driven efficiency across the fragmented East and West African markets by digitizing discovery and providing end-to-end visibility for customers and transporters, achieving savings of up to 20 percent. Lori Systems has built a network of thousands of vetted transporters to move cargo across 12+ countries.
“We’re thrilled to be partnering with Lori Systems to empower truck drivers in Africa, and are excited about the positive impact our revenue-based financing solutions will have on their lives. Lori’s efforts to leverage data-driven and tech-enabled solutions have recorded significant progress in driving further efficiency in the African logistics industry; this has been impressive and very much aligns with our mission,” Ladi Delano, co-founder and chief executive officer of Moove said.
Also, Uche Ogboi, CEO of Lori Systems, in his comments on the partnership, said: “The partnership with Moove enables us to design innovative and flexible financing options, using data we have captured over the years, to allow transporters fund new trucks and increasingly grow their fleet and businesses. By partnering with Moove to unlock access to financing, we can provide an even more efficient service; match the growing customer demand in the market, whilst lowering the costs for goods. It’s as simple as that.”
The launch in Kenya will be followed by a rollout in Nigeria using the same revenue-based financing and credit decision model that Moove has developed as Uber’s exclusive vehicle financing and vehicle supply partner in sub-Saharan Africa.