A new $105 million Series A2 fundraising round was secured by Moove, an African mobility fintech company that offers vehicle finance to drivers of ride-hailing services like Uber and other gig networks.
As primary investors from its Series A, Speedinvest, Left Lane Capital, and the latest ventures—the first two of which are still involved—led this round, contributing $65 million in equity and $40 million in debt. Participating were new investors AfricInvest, MUFG Innovation Partners, Latitude, and Kreos Capital.
The disclosure comes one month after the mobile fintech company Moove secured a $10 million debt financing deal and nearly seven months after it closed its $23 million Series A investment. In addition to Lagos, Accra, Johannesburg, Cape Town, Nairobi, and Ibadan, the startup, founded in 2020, is currently active in six other African cities.
More than a billion people live in Africa, the majority of whom have little or no accessibility to auto loans. Less than 900,000 new vehicles were sold in the area in 2019, as opposed to 17 million in the United States during the same year.
For the majority of people, owning a car is a luxury. Startups like Moove are working to change this by offering auto finance to people who can profit from owning cars, such as gig drivers or mobility entrepreneurs, as Moove calls them.
Drivers who wish to start a ride-hailing service have a versatile choice in Moove, which handles new cars. It eliminates the need to borrow money from car owners or obtain bank loans to finance automobiles obtained from dealerships.
As soon as their registration has been confirmed, drivers register on the platform, receive training, and sign contracts with Moove to gain accessibility to loans for car purchases or rentals. The business registers these drivers with Uber, its sole partner in Africa and exempts weekly rental fees from their earnings before crediting the remaining amount to their accounts.
When asked how many drivers had been able to acquire vehicle possession when using the system, Ladi Delano, co-founder and co-CEO responded, “We have been able to deliver financial freedom through vehicle ownership for some of our clients who have accomplished the programme in different areas.”
Over the next six months, Moove will focus on seven additional markets in Asia, MENA, and Europe.