Moove, a leading African mobility fintech company that specializes in providing vehicle financing to ride-hailing and delivery app drivers, has successfully raised $100 million in a recent funding round to support its expansion into new markets.
While the specific lead investor was not disclosed by Moove, sources familiar with the deal confirmed that Uber led the Series B round, marking the tech giant’s first investment on the African continent.
Other prominent investors contributing to the round include sovereign wealth fund Mubadala, along with several other key players, driving Moove’s post-money valuation to an impressive $750 million. This valuation represents a significant increase from the company’s previous valuation of $550 million, attained in a previous funding round led by Mubadala. The funding news aligns with a recent report from Bloomberg. Notable participants in the funding round also include Dubai-based The Latest Ventures, AfricInvest, Palm Drive Capital, Triatlum Advisors, and Future Africa.
To date, Moove has raised a total of $250 million in equity and $210 million in debt financing.
This substantial funding is pivotal for Moove’s plans to expand into new markets. The company currently operates in 13 cities across six markets, including Nigeria, South Africa, Ghana, the U.K., India, and the UAE. Moove intends to utilize the new capital to broaden its revenue-based vehicle financing platform to include 16 markets by the end of 2025.
Moove’s approach to vehicle financing involves purchasing fleets of vehicles and selling them to drivers through its platform. The company’s software provides financing options to drivers based on credit scores, facilitating the purchase of new vehicles for ride-hailing, logistics, and deliveries. Moove offers a diverse range of vehicles, from traditional models like Toyotas and Suzukis to electric vehicles such as Teslas. Drivers repay the financing through a percentage deducted from their weekly earnings.
Uber’s Strategic Investment in Moove
Uber serves as Moove’s primary car financing and vehicle supply partner, with partnerships extending to other gig networks like SWVL and Kobo. Uber’s decision to invest in Moove, its first investment in an Africa-founded startup, underscores the tech giant’s commitment to ensuring a continuous supply of drivers for its ride-hailing platform. The investment signals Uber’s endorsement of Moove’s business model and further strengthens the strategic relationship between the two companies.
Uber’s support for Moove and other fleet management startups aligns with its goal of transitioning to a fully zero-emission fleet by 2040. Electric vehicles play a significant role in Moove’s expansion strategy beyond Africa, with the company already operating large EV fleets in the UAE and the U.K. Moove is currently testing a product line in India and plans to introduce over 20,000 EVs on the Uber platform.
As part of its expansion strategy, Moove places a strong emphasis on EVs to establish a sustainable and accessible mobility ecosystem globally. However, due to specific challenges in African markets, Moove is exploring alternative approaches, including natural gas vehicles, to address evolving transportation needs.
Challenges and Initiatives for Drivers
Moove drivers in Nigeria have faced significant challenges over the past year, including fuel price hikes and exchange rate fluctuations impacting vehicle maintenance costs. To support drivers facing these macroeconomic challenges, Moove has implemented initiatives like the Moove Care programs to provide relief. These initiatives include reduced weekly remittances, fuel subsidy plans during price hikes, and flexible payment options to ensure affordability for drivers.
Despite the challenging conditions in Nigeria, Moove remains committed to its mission of offering vehicle financing and employment opportunities across Africa. The company continues to work towards positive unit economics in the Nigerian market, leveraging strategic support and enduring customer relationships to navigate economic uncertainties.
Growth Strategy and Expansion Plans
Moove’s growth strategy emphasizes diversification geographically and across market categories to fuel expansion while mitigating risks. The company not only operates in multiple countries but also serves ride-hailing, logistics, mass transit, and instant delivery platforms. Recent partnerships with competitors like Bolt demonstrate Moove’s commitment to expanding options and enhancing customer experience.
Following significant growth milestones, including increased annual recurring revenue and customer base expansion, Moove aims to achieve profitability in the upcoming financial year. The company’s partnership with Mubadala has prompted a move of its headquarters to the UAE, signaling a strategic focus on key markets for sustainable growth and innovation.
With plans to intensify investments in the UAE, Africa, Europe, and Asia, while expanding into new regions like Southeast Asia and Latin America, Moove remains dedicated to pursuing profitable opportunities and sustainable expansion globally.
