Grace Ashiru
- One month after Uber’s announcement of its plans to back Moove in a $100 million funding round, the Nigerian vehicle financing platform has indeed secured a $100 million Series B.
- This strategic move marks a major advancement for the company, signaling its intent to venture into untapped markets.
- Uber led the funding round, with participation from a range of investors, including sovereign wealth fund Mubadala, The Latest Ventures, AfricInvest, Palm Drive Capital, Triatlum Advisors, and Future Africa.
As a result of its partnership with Mubadala, Moove has relocated its headquarters to the UAE.
Uber’s investment in Moove, its first African-founded startup, demonstrates its dedication to securing a dependable pool of drivers for its ride-hailing platform. This move not only validates its business model but also fortifies the partnership between the two companies.
Moove’s post-investment valuation has soared to $750 million with the latest infusion of capital.
Moove has recently secured a new injection of funds, following its $10 million debt funding from Stride Ventures. This funding is intended to strengthen Moove’s position in the Indian market and expand its operations to new urban centers like Delhi, Pune, and Kolkata.
Moove is strategically positioning itself for expansion into new markets, and the influx of funding is crucial to its success. The company currently operates in 13 cities across six countries, including Nigeria, South Africa, Ghana, the United Kingdom, India, and the United Arab Emirates. With the fresh capital, Moove aims to scale its revenue-driven vehicle financing platform to 16 markets by the end of 2025.
Founded in 2020 by Jide Odunsi and Ladi Delano, this mobility company provides vehicle financing solutions for entrepreneurs in the transportation industry. Their innovative approach leverages alternative credit sourcing technology and productivity data to support businesses across ride-hailing, logistics, mass transit, and instant delivery platforms.
Moove employs a two-pronged approach to vehicle financing. As a mobility fintech company, it acquires vehicle fleets and then sells them to drivers through its platform. Leveraging its proprietary software, Moove provides financing to drivers using a credit-scoring system, simplifying the process of purchasing new vehicles tailored for delivery, logistics, and ride-hailing.
The company provides a diverse range of vehicles, including traditional models such as Toyotas and Suzukis, as well as electric vehicles like Teslas. Drivers allocate a portion of their weekly earnings to cover vehicle payments.
Since expanding beyond Africa in 2021, Moove has strategically integrated electric vehicles (EVs) into its operations. It currently manages substantial EV fleets in the UAE and the UK, with plans to introduce over 20,000 EVs on Uber in India.
The company is prioritizing the expansion into new markets, with a focus on electric vehicles (EVs) and plans to establish a globally sustainable and accessible mobility ecosystem. However, there may be delays for African customers in accessing these initiatives.
Initially, Moove’s goal was to broaden its EV product line in Africa by acquiring new electric vehicles at discounted rates and offering them at competitive prices in the region. However, the company may have adjusted its strategy due to challenges such as inadequate road conditions and unreliable power supply.
Moove is exploring the potential of natural gas vehicles as an alternative strategy, especially in specific location.
Delano stresses the company’s commitment to leading electrification efforts in the UK and the UAE. Additionally, they aim to pioneer the transition from internal combustion engines to compressed natural gas (CNG) vehicles in Nigeria, solidifying their position as an industry trailblazer across multiple regions.
The company is proactively preparing the Nigerian market for this transition to alleviate the adverse impact of increasing fuel costs on its customers’ financial performance.
Furthermore, Delano has also revealed intentions to increase investments in the UAE and other pivotal markets in Africa, Europe, and Asia. Moreover, Moove is set to broaden its presence in Southeast Asia and Latin America in the near future.
