Nigeria-based auto-financing startup, Moove has announced a $23 million Series A to build a full-service mobility fintech that democratises vehicle ownership across Africa. The round was led by global VC, Speedinvest and New York-based Left Lane Capital.
Others include DCM Ventures, Clocktower Technology Ventures, thelatest.ventures, London-based LocalGlobe, California-based Tekton Ventures, New York-based FJ Labs, and New York-based Palm Drive Capital.
The list continues with Singapore-based Roka Works, Dubai-based KAAF Investments, Abu Dhabi-based Spartech Ventures, California-based Class 5 Global, and Victoria van Lennep, co-founder of Lendable.
Africa focused VC Verod Capital Management, Kepple Africa Ventures, and London-based Emso Asset Management — one of Moove’s existing lenders — joined the round.
Per Yahoo! Finance, the company says this is the first African investment by many of the US-based VCs in this round. This brings Moove’s total funding to $68.2 million — $28.2 million in equity and $40 million in debt.
According to Technext, Chisom Anoke, Moove Africa’s Country Manager, says this funding would enable the company to expand into more states in Nigeria, increase gender equality in the industry while creating job opportunities both within Moove and for its entrepreneurial customer base.
Founded in 2019 by Ladi Delano and Jide Odunsi, the co-founders initially bootstrapped the company. However, in 2020, Moove raised a $5.2 million seed round and launched fully in June 2020.
Moove’s business model involves providing up to 95% in vehicle financing to its customers, which can be paid back either in 24, 36, or 48 months using a percentage of their weekly earnings.
The company also has a Flexi-Rental option which gives customers access to new cars for a weekly rental fee. Moove aims to ensure 60% of all loans are used to purchase electric or hybrid vehicles. A trend which seems to be gaining ground in Africa.
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Access to vehicle financing in Africa is a struggle. In Nigeria, for example, as of 2016, Deloitte reveals that only 2% of Nigerians could afford to pay for new vehicles. Quite unimpressive numbers for a country that has a population of over 200 million.
Expounding on this, Delano said, “In a continent full of opportunity, mobility is key to moving economies forward, and this funding contributes to our ability to provide revenue-based financing, as Moove empowers Africans to become mobility entrepreneurs safely.
“We help people buy new cars who otherwise couldn’t afford them. And then, using the vehicle as a mobility entrepreneur, they’re able to earn money, which allows them to pay off the vehicle over time,” he concludes
The company is Uber’s sole partner in sub-Saharan Africa for vehicle financing and recently announced a partnership with Global Accelerex to make payments seamless for riders in Moove financed cars.
Moove is focused on mobility entrepreneurs — persons in the ride-hailing and e-logistics space — and is currently operating in Nigeria, Ghana, and South Africa. The company claims its financed cars have completed more than 850,000 Uber trips and currently enjoys a 60% month-on-month growth.
An instrumental factor, as Stefan Klestil, General Partner at Speedinvest, explains. “With Ladi and Jide at the helm of a world-class team, and their unique approach to vehicle financing, Moove has quickly established itself as one of the most exciting tech companies in Africa.
“The company’s expansion to three cities in under 12 months demonstrates the huge demand for vehicle financing in Africa, where just five per cent of new cars are purchased with financing, compared to 92 per cent in Europe.”
