Joy Agwunobi
African mobility fintech start-up, Moove is hitting the accelerator with a $100 million funding round. This fresh injection of capital will help Moove expand into new markets and develop innovative new products for the growing ride-hailing and delivery app sector.Â
With its mission of providing “mobility for all” in Africa, Moove is leveraging its unique model to bring affordable transportation to millions of people across the continent. The company’s core business is providing vehicle financing to gig economy workers, helping them to access reliable transportation and earn an income.Â
As Moove’s announced in a statement, the company’s latest funding round signals a major milestone for the young company. The funding round was led by Uber, a global technology company that provides ride-hailing, delivery, and mobility services. In addition to Uber, Mubadala, a prominent sovereign wealth fund, and other investors also participated in the funding round.Â
In addition to existing investor Mubadala, Moove’s Series B round attracted new investors from a diverse set of geographies. These new investors included The Latest Ventures, a US-based venture capital firm, as well as Africinvest, an investment firm based in Tunisia and Dubai. The round also attracted investments from Triatlum Advisors AG, a Swiss investment firm, Palm Drive Capital, a Nigerian investment firm, and Future Africa, a Pan-African venture capital fund. This diverse group of investors has helped to boost the company’s post-money valuation to $750 million.Â
With this latest funding, Moove has now raised a total of $460 million, consisting of $250 million in equity and $210 million in debt financing. The company plans to use the new capital to expand its revenue-based vehicle financing platform to 16 markets by the end of 2025.
Moove’s innovative vehicle financing model is unique in its two-pronged approach. The company starts by purchasing and refurbishing fleets of vehicles that it makes available to drivers on its platform. Drivers can then choose to pay for these vehicles through a revenue-based financing model, meaning they only pay for the vehicle as they earn income using it. This model is supported by Moove’s in-house software, which provides credit scoring and financing options to drivers.Â
With the additional funding, Moove aims to increase its fleet of vehicles to 45,000, representing a significant expansion in its vehicle financing operations. The company has a specific focus on electric vehicles (EVs), as it strives to advance a more sustainable mobility ecosystem
Moove stated: “We are pleased to announce that our valuation has reached $750 million, a significant increase from our previous valuation. This is a testament to our success in transforming the mobility landscape and improving the lives of the 80,000 individuals we serve across 9 markets.
“ In the last fiscal year, we achieved over $115 million in Annual Recurring Revenue, demonstrating the effectiveness of our model. To date, we have secured a total of $460 million in funding, which will allow us to continue expanding and innovating in Africa and beyond.”
Moove raised $76 million last year, which is more than any other Nigerian startup raised during that time. The company says that the money will be used to build the largest tech-driven financial services platform for mobility entrepreneurs in the country. This was the biggest single raise of the year by any Nigerian startup. The funding consisted of $28 million in equity, $10 million in venture debt, and $38 million in previously undisclosed funds. BlackRock managed the venture debt, while Mubadala Investment Company led the equity round.Â
