Moove, an African mobility fintech specializing in vehicle financing for ride-hailing and delivery app drivers, recently secured $100 million in funding to fuel its expansion into new markets. While the leader of the funding round was not officially disclosed by Moove, sources close to the deal revealed that Uber spearheaded the Series B round, marking Uber’s inaugural investment in an African startup. Other significant investors included sovereign wealth fund Mubadala and a consortium of venture capital firms.
This investment has propelled Moove’s post-money valuation to an impressive $750 million, up from the $550 million attained in the previous funding round led by Mubadala.
The influx of funds is instrumental for Moove as it gears up to expand its revenue-based vehicle financing platform into 16 markets by the end of 2025.
With operations spanning 13 cities across six markets, including Nigeria, South Africa, Ghana, the U.K., India, and the UAE, Moove aims to leverage the investment to enhance its services and market reach significantly.
Why the Investors Invested
The investors, led by Uber, made a strategic decision to invest in Moove based on several compelling factors:
Demonstrated Growth and Traction: Moove’s impressive traction, evidenced by its expansion into 13 cities across six markets and its partnership with major players like Uber, underscores its viability and potential for scalability. The startup’s ability to facilitate over 30 million trips for more than 20,000 customers highlights its growing market presence and operational efficiency. Such robust traction signals to investors that Moove has successfully validated its business model and is well-positioned for further growth.
Financial Performance: Moove’s financial performance, marked by an increase in annual recurring revenue from $90 million to $115 million, demonstrates its ability to generate sustainable revenue streams and achieve significant growth milestones. This financial stability and upward trajectory instill confidence in investors regarding Moove’s ability to deliver returns on their investment.
High Customer Retention Rate: The fact that Moove had 15,000 customers completing over 22 million trips before this latest funding round indicates strong customer adoption and satisfaction with its services. Additionally, the company’s focus on initiatives like Moove Care programs to support drivers amidst challenging macroeconomic conditions underscores its commitment to customer retention and loyalty, which are crucial factors in sustaining long-term growth and investor confidence.
Strategic Partnership with Uber: Uber’s investment in Moove signifies more than just financial support. As Moove’s largest car financing and vehicle supply partner, Uber’s involvement underscores a strategic alignment between the two companies. The investment ensures a steady supply of drivers for Uber’s ride-hailing platform, thereby safeguarding its operational continuity and growth prospects.
Alignment with Sustainability Goals: Both Uber and Moove share a commitment to sustainability. With Uber aiming for a fully zero-emission fleet by 2040, Moove’s focus on expanding its EV fleets aligns perfectly with Uber’s long-term objectives. The investment in Moove serves as a strategic move towards achieving these sustainability goals while capitalizing on the growing demand for eco-friendly transportation solutions.
Market Expansion and Diversification: Moove’s ambitious expansion plans into new markets present lucrative opportunities for investors. By investing in Moove, the investors gain exposure to diverse geographies and market categories, including ride-hailing, logistics, mass transit, and instant delivery platforms. This diversification strategy mitigates risk and enhances the potential for long-term returns.
Innovative Financing Model: Moove’s innovative approach to vehicle financing, facilitated through a credit-scoring system, offers a scalable solution to address the needs of drivers in emerging markets. The ability to purchase vehicles through Moove’s platform empowers drivers economically while generating sustainable revenue streams for the company. This innovative financing model attracted investors looking for disruptive opportunities in the fintech and mobility sectors.
Resilience and Adaptability: Despite facing challenges such as macroeconomic instability and fuel price hikes in key markets like Nigeria, Moove has demonstrated resilience and adaptability. The company’s proactive measures to support drivers, including reduced weekly remittances and flexible payment options, showcase its commitment to navigating through adversities while maintaining profitability. Investors recognize Moove’s ability to weather uncertainties and capitalize on emerging opportunities in the evolving mobility landscape.
A Look At What Moove Does
Founded four years ago, Moove is the brainchild of co-founders Ladi Delano and Jide Odunsi, with a mission to revolutionize vehicle financing and empower drivers across Africa and beyond.
With primary markets in Africa, the U.K., India, and the UAE, Moove operates a sophisticated vehicle financing platform that caters to the diverse needs of ride-hailing, logistics, and delivery drivers. Leveraging a proprietary credit-scoring system, Moove enables drivers to access financing for purchasing vehicles, including a wide range of options from traditional models to electric vehicles.
Notably, Moove’s customer-centric approach extends beyond financing, encompassing initiatives such as Moove Care programs to support drivers amidst challenging macroeconomic conditions. Despite facing headwinds in markets like Nigeria, Moove remains steadfast in its commitment to fostering economic empowerment and mobility access, embodying its vision of driving positive change across Africa and beyond.
