Milestone achieved for the Nigerian-born global startup and world’s first mobility fintech firm, Moove, after successfully securing $105M, to conclude its series A2 funding round.
This news follows a rather oversubscribed $23M funding round completed in August last year, bringing the total to $128M. This undoubtedly places Moove in the top ranks of fastest-growing African fintech firms, with the deal coming in as the second-largest on the continent this year. This new funding is meant for expansion beyond Africa into seven new markets across Asia, the Middle East, North Africa, and Europe.
“At Moove, we are working hard to create disruptive and impactful tech solutions to solve real-world problems. 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, the Middle East, and the North Africa 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.” Jide Odunsi, co-founder and co-CEO at Moove, said.
This funding round was made possible by both debt and equity investments by top VC investors such as Speedinvest, New York-based Left Lane Capital, the latest.ventures, AfricInvest and Kreos Capital.
“In under two years, Ladi, Jide, and the Moove team have built an incredible company that is empowering thousands of mobility entrepreneurs, providing a solution to the supply problem that so many marketplaces are facing. We’re delighted to be partnering with Moove and to be supporting them on the next steps of their journey to reach more mobility entrepreneurs in emerging markets and transform access to vehicle financing,” said Sean Dunne, Partner at Kreos Capital.
Moove and mobility fintech
Launched in 2020 by Ladi Delano and Jide Odunsi, Moove pioneered its mobility financing model which is simply explained as providing vehicle financing to its customers, who often are mobility entrepreneurs working with logistics providers, to purchase brand new vehicles. Moove’s financing model is revenue-based and relies on innovative credit scoring technology.
Since Moove’s $23 million Series A round in August 2021, the company has added five new strategic partners, launched two new vehicle classes (trucks & bikes), expanded into delivery, and grown operations from three to six African cities (Lagos, Accra, Johannesburg, Cape Town, Nairobi, and Ibadan).
Moove has experienced an overwhelming demand in its service across Africa. A key metric, Moove financed vehicles have completed 3 million rides, covering over 25 million kilometres. The company now aims to expand its model globally to meet the needs of other mobility entrepreneurs in other emerging markets over the next six months.
A data-driven impact on transport and finance
Statistics have proven that poor credit penetration across Africa has restricted the ability of over 1 billion Africans to buy new vehicles. The same problem is observed in the MENA region as well as Asia. This challenge presented an opportunity to Moove, which, in its near 2 years of existence, has emerged as the leading change in the “mobility fintech” sector, a white space dominated by Moove, solving the acute problem of limited access to vehicle financing.
By integrating its alternative credit scoring technology into ride-hailing, e-logistics, and instant delivery platforms, Moove can use proprietary performance and revenue analytics to underwrite loans to drivers that have previously been excluded from financial services
With a commitment to equality across the board, 50% of its riders are women. Moove is also committed to environmental sustainability, in its promise of ensuring that at least 60% of its financed fleet is electric/ hybrid. This act also saw the company rapidly replace old cars with new fuel-efficient ones, ensuring its recognition and awarding at the IFC’s Annual Corporate Awards as one of the top 20 most impactful and transformational projects, applying an innovative and scalable solution towards a global problem.