Coming out of Nigeria, the African Mobility FinTech startup empowering gig drivers with car financing options, Moove has secured $105M in Series A2 financing to disrupt ride-hailing across Africa.
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Following its $10M debt financing and $23M Series A equity financing closed in summer of 2021, the African mobility Tech Startup Moove has successfully raised $105M in its latest funding round. The Series A2 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. This latest Mega Deal brings Moove’s total funding to $174.5M in an equity and debt mix.
Launched in Nigeria in 2020 by Ladi Delano and Jide Odunsi, Moove is Uber Technologies’ exclusive vehicle financing and supply partner in sub-Saharan Africa. The startup helps underserved segments of the market finance their car acquisitions through a revenue-based model integrated into the gig driver's payment methods. Operating across South Africa, Kenya and Ghana the African Mobility FinTech utilizes its proprietary credit scoring and open data technologies to provide gig drivers with car repayment plans, addressing a shortage in the ride-hailing market supply.
As recorded in our FinTech 2022 Venture Investment Report, Many milestones were achieved by FinTech startups across the Middle East, Africa, Pakistan, and Turkey as funding grew by 550% YoY and total transactions recorded an almost 60% increase. Surely the 5 FinTech Mega Deals closed in Africa were core drivers in crossing the $2Bn mark in funds. The FinTech craze across Africa has been truly remarkable in 2021, where FinTech was the leading industry in all of the top 4 markets. Accounting for more than 60% of all capital deployed in Africa over 2021, FinTech startups closed the highest number of deals in each of the top 4 geographies. In geographies like Nigeria, the sector accounted for more than 70% of total VC investment in the country, while this proportion is driven to almost 90% in South Africa. This is in part due to the 5 Mega Deals closed in the FinTech sector by alternative payment providers, neo-banking solutions, and digital payment infrastructure builders OPay, Flutterwave, TymeBank, JUMO, and Wave Mobile Money. Yet, even without these 5 Mega Deals, the sector would still account for a solid 36% of all capital raised in 2021.
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Moove has launched to provide a sustainable solution through vehicle financing for drivers who want to get into the business of ride-hailing without having to borrow from car owners or take inaccessible bank loans to finance cars bought from dealerships. After users sign up, get verified and trained on the platform, the startup offers a flexible payment plan to own or buy a new Moove vehicle usually spanning from 12-48 months. The startup integrates through the Uber platform to seamlessly discount weekly repayments from drivers' balances before reimbursement. “One of the things that we found and we’re very excited about is that this problem of lack of access to financing for mobility entrepreneurs is not just unique to Africa,” co-founder and co-CEO Jide Odunsi told Techcrunch. “It is a problem faced across many emerging markets. So what this new round is going to help us do is not just scale in Africa across our existing markets and new markets, but it will also enable us to do to scale into new markets and new regions.” Odunsi added.
Co-founder Ladi Delano stated that while the $175M raised overall do not cater to the need of their current market, it will be just the boost they need to expand across the region and access more ground. In doing so, the startup is not only potentially unlocking economies of scale and revenue-generating opportunities, but is also tapping into new product opportunities like EMVs. Delano concluded to TechCrunch “We have managed to build a Nigerian solution for what we now know is a global problem. And that is exciting for us. Because not only do we have the opportunity to help solve the lack of access to vehicle financing problems for mobility entrepreneurs in Africa, but now we have the opportunity to take this Nigerian-born solution to the rest of the world.”
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