Moove, an African mobility fintech that specializes in offering vehicle financing solutions to ride-hailing drivers and gig economy participants, has recently secured a substantial investment totaling $76 million. This funding round consists of three components: $28 million in equity from a mix of both new and existing investors, led prominently by Mubadala Investment Company; $10 million in venture debt sourced from funds managed by BlackRock; and an additional $38 million in previously undisclosed funds accumulated over the preceding year. Notably, this financial injection follows Moove’s prior funding milestone of $105 million, which encompassed $65 million in equity and $40 million in debt, just one year earlier.
Why The Investors Invested
Investors’ substantial commitment to Moove is underpinned by a range of strategic factors. Foremost, Moove operates within the transformative ride-hailing and gig economy domain, which is experiencing a global surge. The exponential growth of this sector and the increasing adoption of flexible work arrangements have propelled the demand for efficient vehicle financing solutions, precisely what Moove offers.
Investors’ confidence is amplified by Moove’s impressive financial performance and strategic alliances. With $105 million raised in the previous Series A2 financing round, Moove demonstrated its capacity to attract substantial capital and deliver tangible results. Additionally, its partnership with Uber, the dominant ride-hailing platform, positions Moove as a crucial vehicle supply partner, fostering a unique and advantageous market position.
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The revenue-based financing model championed by Moove represents a pioneering approach that resonates with investors. By enabling drivers to enter the ride-hailing industry without the hurdles of conventional loans, Moove addresses a critical gap in the market. This model, backed by concrete evidence of success, underscores the company’s innovative thinking and practical solutions.
Investors are further enticed by Moove’s impressive global expansion. The company’s presence in 13 diverse cities across Africa, Europe, the Middle East, and Asia signifies its adaptability to varied market dynamics. This expansion, accompanied by strategic partnerships with platforms like Glovo, Kobo360, and Swvl, showcases Moove’s ability to thrive in different contexts.
Finally, Moove’s strong leadership, exemplified by co-CEOs Ladi Delano and Jide Odunsi, adds to the investment appeal. Their track record and the company’s 17x revenue growth since its Series A funding round in 2021 validate Moove’s ability to execute its vision.
What Moove Does
Originating in Lagos, Nigeria in 2020, Moove was co-founded by Ladi Delano and Jide Odunsi, who hold the positions of co-CEOs. The company’s core focus revolves around delivering accessible vehicle financing solutions tailored to drivers on ride-hailing platforms, such as Uber, and participants in the gig economy. Moove’s innovative approach centers on revenue-based financing, allowing drivers to access loans for car acquisition or rental without the intricacies typically associated with conventional bank loans. The streamlined process involves driver verification, contract agreements with Moove, and the subsequent provision of loans with repayment terms spanning 12 to 48 months. Upon successful repayment, drivers gain ownership of the vehicles.
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Moove’s influence extends far beyond its initial roots. Operating in 13 cities across continents including Africa, Europe, the Middle East, and Asia, Moove has established itself as a global contender in its niche. Prominent markets encompass Nigeria, Egypt, South Africa, Ghana, Kenya, the U.K., India, and the UAE. This broad footprint underscores Moove’s adaptability to varying market dynamics and its commitment to resolving a global challenge — the lack of accessible vehicle financing. The recent influx of $76 million in funding fortifies Moove’s capacity for further expansion and consolidation within these diverse markets, bolstered by its strategic alliance with Uber and status as a primary vehicle supplier. The company’s aspiration to bring its homegrown Nigerian solution to a worldwide audience reinforces its dedication to making a significant impact on the global mobility landscape.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard