Moove is an African ride-hailing fintech disruptor.

Nigeria-based fintech Moove, which provides vehicle financing to drivers of ride-hailing companies, has raised Series A2 financing of $105 million. The round 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. (MAGNiTT)

The latest round brings Moove’s cumulative financing to $174.5 million. The startup was launched in 2020 by Ladi Delano and Jide Odunsi.

In Africa, which is Moove’s focus, entrepreneurs such as gig drivers have low access to credit. Moove provides financing by deploying an alternative credit scoring technology and allowing the drivers to buy new cars paid for from their revenue streams.

Typically, a new user would sign up, get verified and be trained on the platform. Moove then offers a flexible payment plan, usually of a tenure of 12-48 months, to own or buy a new Moove vehicle. An integration with the Uber platform allows the recovery of weekly repayments from drivers’ balances before payouts.

Financial inclusion

“The Moove model that we’ve pioneered in Africa providing revenue-based vehicle financing to mobility entrepreneurs can be applied anywhere in the world,” said Jide Odunsi, co-founder and co-CEO at Moove. “As we scale, we remain committed to empowering women, leading the electrification of the mobility space and driving financial inclusion.”

“We have enabled over 3 million trips in Moove-financed vehicles across Africa, launched in six cities and connected thousands of mobility entrepreneurs to marketplaces,” said Ladi Delano, co-founder and co-CEO.

In a telling statistic, Moove reveals that fewer than 5% of all vehicles in Africa are purchased with financing compared to 92% in Europe and ownership is less than 44 cars per 1,000 people, compared to 640 per 1,000 in Europe.

The new funding will help the startup scale up its operations across Africa, and address other vehicle classes such as trucks, bikes, three-wheelers, and buses.

The company also intends to branch out into seven new markets across Asia and the MENA region over the next six months.

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