Moove secures $105m in Series A2 funding round
Moove, one of the fastest-growing mobility fintechs, has raised $105 million in a new Series A2 funding round led by previous investors Speedinvest, Left Lane Capital, and the latest ventures, as well as new participants AfricInvest, MUFG Innovation Partners, Latitude, and Kreos Capital.
The company said in a statement to Technext that the funds will be used to “rapidly scale its revenue-based vehicle financing model to seven new markets across Asia, the Middle East, and Europe over the next six months.”
This announcement comes just months after the startup, which launched in Lagos in 2020, closed a $23 million Series A round and a month after closing a $10 million debt financing round.
Its presence has grown to six African cities, including Lagos, Accra, Johannesburg, Cape Town, Nairobi, and Ibadan, with a total funding of $174.5 million in debt and equity. It claims that its customers have already completed over 3 million rides totaling more than 25 million kilometers.
Moove’s co-founder and co-CEO, Ladi Delano, stated that “we’re now leading this growing category within fintech.”
“With this new fundraise, we are well-positioned and well funded to help solve this global problem. We’re delighted to have the support of leading investors across the globe who will be integral in enabling us to take our Nigerian-born model to the world.”
Ladi Delano
Moove co-founder and CEO Jide Odunsi stated that the company has been “working hard to create disruptive and impactful tech solutions to solve real-world problems.” Odunsi went on to say that the company is dedicated to “empowering women, leading the electrification of the mobility space, and driving financial inclusion.” These ideals are at the heart of what we do as we continue to build a global business that is both sustainable and impactful.”
“Moove is committed to ensuring that at least 50% of its customers are women, and its product design enables more women to access vehicle financing and flexible employment,” the company says in a press release.
However, it did not specify how it planned to accomplish this, particularly given its partnership with Uber, the ride-hailing company.
In July 2020, Moove announced a partnership with Uber to make vehicles available to drivers in the hopes that they will pay within a certain time frame. However, Uber has been accused of creating a hostile environment for women, prompting the company to provide sexual misconduct and assault training to all new drivers in the United States and Canada. Only 27% of Uber drivers are female in the United States, one of the company’s most important markets.
Moove claims that it will assist its customers, dubbed “mobility entrepreneurs,” in “purchasing brand new vehicles using a percentage of their weekly revenue.” It did not specify what percentage of their weekly earnings would be deducted or how long this would last. Many drivers have complained about a large percentage of their earnings going to Uber.
Drivers complained last year about the terms and conditions of Moove’s deals with them, accusing the company of forcing them to pay exorbitant sums for brand new vehicles. According to one of the drivers, Moove will “supply us with cars worth N7.2 million to be paid in weekly instalments.” “Why would I spend that much money on a car just for Uber business?”
According to a Moove representative at the time, “Moove is a revenue-based financing company that allows those who want to drive on the Uber platform to get access to affordable credit.” It is a one-stop shop for these customers, saving them time and money by selling new vehicles at market rates and aggregating services to get them on the road faster.”
Moove did not specify what methods it would employ if drivers stopped using Uber.
It also states that it will “expand its partnerships and vehicle classes to include cars, trucks, bikes, three-wheelers, and buses” over the next six months.
Julius Tichelaar, a partner at AfricInvest, one of the investors, stated that AfricInvest is “delighted” with the company’s direction.
“Moove has the potential to transform the lives of millions of people across the continent,” he said. “We’re delighted to be supporting them as they expand Moove in Africa and beyond into more emerging markets.”
One of the investors, Julius Tichelaar, a partner at AfricInvest, stated that AfricInvest is “delighted” with the company’s direction.
“Moove has the potential to transform the lives of millions of people across the continent, and we’re thrilled to be supporting them as they expand Moove in Africa and beyond into more emerging markets,” he said.
