Uber Technologies Inc. is currently engaged in discussions to invest a substantial $100 million in the African vehicle-financing startup, Moove, as reported by Bloomberg, citing sources familiar with the matter. If the deal goes through, Uber will join a consortium of investors in a funding round that could raise Moove’s enterprise value to approximately $750 million, up from its current valuation of about $650 million.
The funding round, which is yet to conclude, may see the final figure fluctuate between $75 million and $100 million, according to sources quoted by Bloomberg. In 2023, Moove emerged as one of the most funded startups in Nigeria, securing $76 million amidst a slowdown in funding within the Nigerian startup ecosystem.
Moove utilized the $76 million raised last year to establish itself as the leading tech-driven financial services platform for mobility entrepreneurs, marking the largest single fundraising event by any Nigerian startup in the same year. The funding comprised $28 million in equity, $10 million in venture debt from various funds, and $38 million from undisclosed sources over the past year. BlackRock manages the venture debt, and Mubadala Investment Company led the equity round, attracting both new and existing investors.
Earlier in the month, Moove also secured a debt funding of $10 million from Stride Ventures, a sector-agnostic venture debt fund. The mobility company, which expanded its operations to India in 2023, plans to utilize the new funds to fortify its presence in the Indian market and extend its services to additional cities such as Delhi, Pune, and Kolkata.
Moove, headquartered in Amsterdam, became Uber’s official vehicle-financing partner in sub-Saharan Africa in 2020. This partnership allows drivers to access vehicles without making a down payment, repaying the amount through daily installments deducted from their Uber earnings. The potential $100 million investment from Uber could deepen this partnership, potentially facilitating broader driver financing globally.
Founded in Lagos in 2020 by Nigerian entrepreneurs Ladi Delano and Jide Odunsi, Moove aims to assist aspiring ride-hailing drivers who face challenges in accessing vehicle financing. The startup employs a credit-scoring system to offer financing to drivers, enabling them to purchase new vehicles for ride-hailing, logistics, and deliveries, with repayments based on a percentage of their weekly income.