Moove raises $105m Series A to push Africa away from air-polluting vehicles
Moove, which prides itself as the world’s first mobility fintech, said it has raised $105 million in an oversubscribed Series A2 round consisting of equity and debt.
The company plans to scale its revenue-based vehicle financing model to seven new markets across Asia, the Middle East and the North African region (MENA), and Europe over the next six months. Moove also has an ambition of ensuring that at least 60 percent of the vehicles it finances are electric or hybrid in line with targets set at COP26. This means the company wants to replace the old-polluting vehicles that are exported from the rest of the world to the continent with new fuel-efficient vehicles.
Moove’s latest funding was led by existing investors, Speedinvest, Left Lane Capital, and thelatest.ventures, with participation from new investors including AfricInvest, MUFG Innovation Partners, Latitude and Kreos Capital.
Founded by Ladi Delano and Jide Odunsi in 2020, Moove provides mobility entrepreneurs access to revenue-based financing in markets with low access to credit. It leverages alternative credit scoring technology to offer vehicle financing to its customers helping them purchase brand new vehicles using a percentage of their weekly revenue.
Ladi Delano, the company CEO says discovering the whitespace of mobility finance was pivo+
tal to its decision to launch Moove. Since then, the company has surpassed over 3 million trips in Moove-financed vehicles across Africa, launched in six new cities, and connected thousands of ambitious mobility entrepreneurs to ride-hailing, e-logistics, and instant delivery marketplaces.
“We’re now leading this category within fintech. But there are still millions of budding mobility entrepreneurs in emerging markets across the world who have limited or no access to vehicle financing and marketplaces that are facing critical supply issues. With this new fundraising, we are well-positioned and well funded to help solve this global problem. We’re delighted to have the support of leading investors across the globe who will be integral in enabling us to take our Nigerian-born model to the world,” Delano said.
The $105 million Series A2 brings the total raised by the mobility fintech pioneer to $174.5 million. Moove raised £23 million in an oversubscribed Series A round in August and secured seed-stage funding from Future Africa in 2019.
Apart from expanding to new countries, Moove will also expand its partnerships and vehicle classes to include cars, trucks, bikes, three-wheelers, and buses.
“The Moove model that we’ve pioneered in Africa providing revenue-based vehicle financing to mobility entrepreneurs can be applied anywhere in the world, which is why we’re excited to be expanding to new emerging markets in Asia and the MENA region. As we scale, we remain committed to empowering women, leading the electrification of the mobility space, and driving financial inclusion. These ideals are at the core of what we do as we continue to build a sustainable and impact-driven global business,” said Jide Odunsi, co-founder and co-CEO at Moove.
The mobility space in emerging markets is often highly fragmented and informal, Moove is helping to formalise how millions of people can participate in this economy to earn a living and own their vehicle. Moove has a commitment to ensuring that at least 50 percent of its customers are women, its product design enables more women to access vehicle financing and flexible employment.
“At AfricInvest, we are focused on supporting and growing companies that we believe will go beyond their own borders and become regional champions. Ladi and Jide have proven that Moove has the potential to transform the lives of millions of people across the continent and we’re delighted to be supporting them as they expand Moove in Africa and beyond into more emerging markets. Through the AfricInvest FIVE Fund, we’re incredibly proud to be joining Ladi, Jide, and all the Moovers on their exciting journey of disrupting financial services,” said Julius Tichelaar, Partner at AfricInvest.