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Nigeria’s vehicle-financing startup Moove has raised $105 million in a Series A2 round led by its existing investors Speedinvest and Left Lane Capital. Another four new investors, AfricInvest, MUFG Innovation Partners, Latitude, Kreos Capital joined the round.
Launched in 2019 by two British-Nigerians, Moove integrates with ride-hailing, logistics and instant delivery marketplaces. Shortly after its launch, Moove partnered with Uber and became the ride-hailing giant’s exclusive vehicle financing and vehicle supply partner in sub-Saharan Africa. The company a credit scoring system to provide vehicle financing to customers for ride hailing.
The company sells itself as a pioneer of the mobility fintech in Africa- a continent known for its low credit penetration and car ownership rates. Fewer than 5 percent of all vehicles in Africa are purchased with financing compared to 92 percent in Europe. As to vehicle ownership, African has less than 44 cars per 1,000 people, compared to 640 per 1,000 in Europe and 816 in the US, according to Moove’s website.
Since its inception, Moove-financed vehicles have completed over three million rides covering more than 25 kilometers. The fresh funds are expected to serve the company’s expansion plans in other emerging markets across Asia, MENA and Europe over the next six months, according to a statement released to the media. The company is also expected to add more vehicle classes to its business model including three-wheelers, trucks, buses and bikes.
“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,” said Ladi Delano, co-founder and co-CEO at Moove. “With this new fundraise, we are well-positioned and well-funded to help solve this global problem.”
The company sees a great opportunity in highly-populous Asia and the MENA region where vehicle ownership stands at 136 per 1,000 and 261 per 1,000, respectively.
Last month, Moove received a ten-million investment from NBK Capital Partners Mezzanine Fund II, which the company said would be used to support its expansion in West Africa.
Fintech stands as one of the fastest growing and most attractive sectors in Africa. In 2021, fintech startups had secured 62 percent of the total funding on the continent which was estimated at $ 4.9 billion, according to Briter Bridges, a leading platform for startup funding in Africa.
Last year, Moove had raised $23 million in its first Series-A round. The funds were used to expand the company’s footprint across Africa. As of today, Moove is present in six African cities including Lagos, Accra, Johannesburg, Cape Town, Nairobi and Ibadan.
(Reporting by Noha El Hennawy, editing by Seban Scaria)
