Moove, the Nigerian mobility fintech which provides revenue-based financing to mobility entrepreneurs across Africa, has raised $105 million in an oversubscribed Series A2 round consisting of equity and debt.
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.
Launched in 2020 by Ladi Delano and Jide Odunsi, Moove is democratizing vehicle ownership across Africa by providing mobility entrepreneurs access to revenue-based financing in markets with low access to credit. Using its alternative credit scoring technology, Moove provides vehicle financing to its customers to purchase brand new vehicles using a percentage of their weekly revenue.
Having experienced overwhelming demand and exponential growth across Africa, Moove-financed vehicles have completed over 3 million rides covering more than 25 million kilometers.
Now, Moove is expanding its model globally to meet the needs of mobility entrepreneurs in other emerging markets.
With this new $105m Series A2 round, which brings the total raised by the mobility fintech pioneer to $174.5m, Moove will rapidly scale its revenue-based vehicle financing model to seven new markets across Asia, MENA, and Europe over the next six months.
After raising $23 million in an oversubscribed Series A round in August 2021, Moove is now leading the charge in the “mobility fintech” sector, a white space where Moove has emerged as the leader across Africa, helping to solve the continent’s acute problem of limited access to vehicle financing for millions of Africans.
Poor credit penetration across Africa has restricted the ability of over 1 billion Africans to buy new vehicles. Fewer than 5% of all vehicles in Africa are purchased with financing compared to 92% in Europe and vehicle ownership is less than 44 cars per 1,000 people, compared to 640 per 1,000 in Europe and 816 in the US. Similarly in Asia and the MENA region, with a combined population of more than 5 billion people, vehicle ownership stands at just 136 per 1,000 and 261 per 1,000, respectively.
Over the next six months, Moove will scale its revenue-based vehicle financing model to mobility entrepreneurs across Asia, MENA, and Europe, and plans to expand its partnerships and vehicle classes to include cars, trucks, bikes, three-wheelers, and buses.
Ladi Delano, co-founder and co-CEO at Moove, said: “Less than two years ago we discovered this whitespace of mobility fintech and launched Moove. Having now surpassed over 3 million trips in Moove-financed vehicles across Africa, launched in six new cities and connected thousands of ambitious mobility entrepreneurs to ride-hailing, e-logistics and instant delivery marketplaces, we’re now leading this growing category within fintech. But there are still millions of budding mobility entrepreneurs in emerging markets across the world who have limited or no access to vehicle financing and marketplaces that are facing critical supply issues.
“With this new fundraise, we are well-positioned and well funded to help solve this global problem. We’re delighted to have the support of leading investors across the globe who will be integral in enabling us to take our Nigerian-born model to the world.”
Jide Odunsi, co-founder and co-CEO at Moove, said: “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 and the MENA 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.”
Stefan Klestil, General partner at Speedinvest, said: “Ladi and Jide are redefining what fintech can be, championing the use of revenue-based vehicle financing to empower people through employment and ensure platforms such as Uber have a steady flow of drivers and couriers to enable their business expansion. With six markets under their belts already and partnerships with leading platforms, they are ready to further scale. We’re delighted to be backing Moove again as they grow the business across the world.”