Grace Ashiru
For Moove, which is constructing the largest EV ride-hailing fleet in the MENA area beginning with the UAE, the financing represents a significant accomplishment.
In order to fund the construction of the largest EV ride-hailing fleet in the MENA area, Moove, the first mobility fintech in the world and Uber’s largest vehicle supply partner in EMEA, is seeking $30 million via a debut sukuk issuance handled by Franklin Templeton Investments (ME) Ltd.
The successful closing of this company’s first sukuk will give Moove access to the vast pool of Islamic investors who are especially keen on making investments that are socially and environmentally responsible. It will also undoubtedly open up new financing options for Moove’s ambitious expansion plans.
As a sukuk al- istisna, a Shari’ah compliant contract for the purchase of EV manufacturing, the issuing of the Shari’ah compliance notes or “sukuk” has been privately arranged and organized.
Building on its achievements, this investment marks a turning point for Moove and is a sign of the robustness of its business model and future expansion.
“This financing is a milestone for Moove – our first sukuk issuance which highlights our growth and sustainability as a global company,” said Ladi Delano, co-founder and co-CEO of Moove.
The fact that this advances our goal of developing the largest EV ride-hailing fleet in the area, advancing mobility electrification, and making it possible for cities to achieve their net-zero goals is also significant.
In order to accelerate the electrification of mobility and improve the ride-hailing passenger experience in the region, Moove will use the funding to scale to 2,000 EVs in the UAE over the next year.
To help cities like Dubai reach their ambitious Net Zero ambitions, Moove predicts that this fleet of EVs will reduce carbon dioxide emissions by nearly 5,000 metric tonnes annually.
“Franklin Templeton is pleased to lead this innovative Sukuk transaction that simultaneously complements our global sukuk and Sharia compliant private market strategies, while supporting the development of mobility and fintech ecosystems in the UAE initially, followed by more markets in the future,” said Mohieddine Kronfol, CIO, Global Sukuk and MENA Fixed Income, of Franklin Templeton.
The transaction also supports the opportunity for private lending that we have been suggesting exists in the region, combining appealing yields with security and credit management.
“We wish the management team at Moove good success and look forward to seeing their automobiles on the road as well as the potential social and environmental impact their business can have on our area.”
Investing in electric vehicle infrastructure to promote sustainability
Moove will release its EV charging app, Moove ChargeTM, as part of its launch in the UAE. The first end-to-end charging experience and full EV charging network app designed particularly for ride-hailing drivers, Moove Charge first debuted in London in August.
Users can search for charging stations, see charging stations that are compatible with their car, see charging stations’ availability in real-time, filter by charging speed, start and stop charging, and utilize the wallet feature.
As part of its goal to making sure that at least 60% of the vehicles it finances worldwide are electric vehicles, Moove is collaborating with value chain partners in the MENA region to speed up this transition in areas with sparse charging infrastructure.A year of substantial development in the electrification of forward-moving transportation
Following a year of strong growth and expansion for the company, Moove has entered the UAE. When the mobility fintech introduced a 100% EV rent-to-buy strategy in London in August, it made its debut in Europe.
In order to contribute to the development of sustainable employment prospects in the emerging economy, the company also started in India. In its first year, it would roll out 5,000 CNG and EV vehicles across Mumbai, Hyderabad, and Bangalore.
With its customers having made over 11 million journeys in Moove-financed automobiles over the previous two years, Moove has enabled sustainable employment creation and a road to asset ownership.
This is due to the mobility fintech’s alternative credit scoring methodology, which grants consumers who operate as gig workers but were previously turned away from banking institutions access to vehicle finance.
