Moove, an African mobile fintech company that provides vehicle financing to drivers of platforms like Uber and other gig networks, has raised $105 million in a new A2 funding series.
Existing investors SpeedInvest, Left Lane Capital and Latest.Ventures (the first two are top Series A investors) led the round with $65 million in equity and $30 million in debt. We have been joined by new investors such as AfricInvest, MUFG Innovation Partners, Latitude and Kreos Capital.
The announcement comes nearly seven months after Moov closed a $23 million Series A round and a month after Mobility Fintech closed $10 million in debt financing. The startup, launched in 2020, is now present in six African cities: Lagos, Accra, Johannesburg, Cape Town, Nairobi and Ibadan.
Africa is home to over a billion people, most of whom have little or no access to vehicle finance. Fewer than 900,000 new vehicles were sold in the region in 2019, compared to 17 million in the US that same year.
Owning a car is a luxury for most of the population. And startups like Moove want to provide a long-term solution by financing vehicles for people who own cars—drivers or mobility entrepreneurs, as Moove describes them.
New car Moove is a flexible option for those drivers who want to start driving without borrowing money from car owners or taking out bank loans to finance cars purchased from dealers.
Here’s how it works: Drivers register on the platform and, once verified, are trained and signed with Move to receive a loan to buy or rent a car. We do. The company transfers these drivers to the Uber platform — exclusive partners across Africa — and then deducts the weekly rent from their earnings before transferring the balance to their accounts.
Loans are issued for a period of 12 to 48 months, and when drivers repay them (at an annual interest rate of 8-13%), they become car owners, the company said.
“We have been able to provide financial independence through vehicle ownership for some of our clients who have completed programs in multiple markets,” said Lady Delano, co-founder and co-CEO, when asked how many drivers have driven vehicle ownership. Since then, cars have been used on the platform.
“Therefore, we are still a young company. Whose term of 48 months has not yet been completed. But some people who signed up for smaller products in the business a long time ago can pay and make a purchase. ,
The chief executive focused on loan repayments for funded vehicles, the number of drivers using the platform (as of 12,900 pre-approved registrations last August), or revenue (which Delano said increased by 50%). Exact figures are not provided. monthly since August last year). However, he added that the Move-funded vehicles have made more than 3 million trips since launching two years ago.
This number is not only from taxi platforms. This also includes bicycles, two-wheeled vehicles used for courier services and logistics services; and trucks, vertical marketplace Move has expanded its seven African cities after partnering with suppliers such as Gokada and Lori.
The income-based vehicle financing platform says it will scale this model to drivers of other vehicle classes such as tricycles and buses.
While the new series will give the A2 a huge amount of firepower in existing markets, including the latest market in Uganda, it will also help the company expand into new markets outside of Africa.
“We are thrilled to learn that this lack of access to funding for mobile entrepreneurs is not unique to Africa,” said the co-founder. CEO Jid Odunsi.
“This is a problem that many emerging markets face. So this new round will not only help us expand into our existing markets and new markets in Africa, but will also enable us to expand into new markets and new regions.
Move is targeting seven new markets in Asia, the Middle East and North Africa and Europe over the next six months. “As you can see, in this empty space that we have explored at Mobility Fintech, we want to make sure we maintain our first-mover advantage in this new funding round. We are entering these new markets to build business and meet our customers when they need them,” Delano said.
Move’s total funding is $174.5 million in debt and equity. Delano argued that this amount was not enough to meet market demand. However, this large sum gave it enough arsenal to enter markets outside of Africa, where it had to compete with Autocheck, FlexClub and Planet42, which use other car financing models. In its new markets, Moov will face new competition from players such as Cairo from Southeast Asia, Drover from the UK and Virtuo from France.
In an interview with gaming-updates last August, Delano said that Move was looking into introducing electric vehicles for its “mobile entrepreneurs,” so at least 60% of vehicles will be electric or hybrid in the coming years. At the time, Delano said these car models were too expensive for the average African, but Moov’s partnerships with OEMs would make them affordable.
But implementation has so far been a difficult task for drivers in Africa, especially due to the lack of access to electricity and purchasing power. Delano said the company is using the investment to work on a more sustainable approach to launching electric vehicle solutions for its gig drivers in Africa and emerging markets.
“We managed to find a Nigerian solution to a problem that we now know is global. And this is interesting for us. Because not only do we have the opportunity to address the lack of access to vehicle finance for mobile entrepreneurs in Africa, but now we have the opportunity to bring this Nigerian-born solution to the rest of the world,” said Scaling’s Delano. Said about. Company from Nigeria on the coast of Africa.
“This is something we are very proud of and excited about. And I hope this will be the start of many new Nigerian startups and solutions that can solve global problems.”