Moove raises $76M equity and debt from Mubadala and BlackRock at a $550M valuation
African fintech company, Moove, has secured $78 million in funding to provide vehicle financing to drivers of ride-hailing platforms such as Uber and other gig networks. The funds include $28 million in equity from new and existing investors, with Mubadala Investment Company leading the way, and $10 million in venture debt from BlackRock-managed funds and accounts. In addition, Moove also disclosed that they raised $38 million in funds during the previous twelve months.
Moove has announced its latest funding round, a year after raising $105 million in Series A2 financing. The company has utilized various forms of debt financing since its inception, including funding from British International Investment, Franklin Templeton Investments, and ABSA. Moove has raised $325 million, with $150 million in equity and over $175 million in debt. With this new funding, Moove’s valuation has increased to $550 million.
Moove was established in Lagos, Nigeria, in 2020 by Ladi Delano and Jide Odunsi, who serve as co-CEOs. The company offers flexible options for individuals who want to start their own ride-hailing or gig economy businesses without borrowing money from car owners or relying on bank loans to purchase vehicles from dealerships. Moove uses revenue-based financing as a means of providing these options to drivers. The company aims to make it easier for drivers to get into these businesses and succeed without worrying about financial obstacles.
Individuals who wish to become gig drivers can register on Moove’s platform and, undergo verification, training, and sign a contract to access loans for purchasing or renting cars. Moove collaborates with Uber and other mobility platforms such as Glovo, Kobo360, and Swvl to enlist these drivers as gig workers. The company then deducts weekly rental fees from their earnings and transfers the remaining balance to their accounts. The loans are typically between 12 to 48 months, and upon repayment, drivers own the cars with an annual interest rate ranging from 8% to 13%.
Since its inception, Moove has expanded its operations to 13 cities across Africa, Europe, the Middle East, and Asia, including Nigeria, Egypt, South Africa, Ghana, Kenya, the UK, India, and the UAE. The founders stated that they had developed a Nigerian-inspired solution for a global issue and were thrilled to bring this innovative idea to the rest of the world. “We have the opportunity not only to help solve the lack of vehicle financing for mobility entrepreneurs in Africa but also to take this Nigerian-bred solution to the rest of the world,” Delano stated during the startup’s latest pricing round in March 2022.
Moove has recently secured an investment to expand and strengthen its presence in markets where it is Uber’s biggest vehicle supplier partner in EMEA. Despite only launching four months ago, the company claims to be India’s second-largest vehicle partner and operates the largest EV fleet in the UAE. Moove is a mobility fintech that has worked with over 15,000 customers, completing over 22 million trips. According to the Financial Times, since its Series A in 2021, the company has seen a 17x revenue growth and has annual recurring revenues of $90 million.
Moove’s profitability in specific markets was alluded to by Delano in a statement. The co-CEO stated that the funding led by Mubadala would enable Moove to double down on its already profitable markets in the UAE, India, the UK, and South Africa. Furthermore, it would continue to invest in enhancing customer experience and accelerating product development to achieve group-wide profitability within the next 12 months. Moove’s recent actions, which have raised concerns, may have been geared toward meeting this goal. Moove, which employs 500 individuals, carried out a company-wide “dismissal” in December, affecting an unknown number of employees. In Nigeria, Moove impounded drivers’ cars for nonpayment of loans, resulting in complaints about unfair working arrangements, as reported in May.
Investors of Moove have remained undeterred by recent reports and are continuing to invest in the African-founded mobility fintech company, particularly those that show a clear path to profitability. As the lead investor, Mubadala sees Moove’s potential as a highly scalable tech-enabled platform that provides mobility entrepreneurs worldwide with access to credit and other financial services previously unavailable to them. Faris Sohail Al Mazrui, the Head of Ventures & Growth, will join Moove’s advisory board. This investment marks Mubadala’s first in an African-founded upstart. Along with Speedinvest and Left Lane Capital, Moove has a variety of global backers. The market for mobility entrepreneurs is substantially underbanked and underserved, making it an area with significant long-term potential.