Moove, an African start-up firm that provides auto financing for ride-hailing
drivers, has raised $105 million from a slew of investors.
Founded in 2020, Moove provides financing to ride-hailing
drivers in Africa but is now eyeing up international markets, including Europe.
Led by existing investors Speedinvest, Left Lane Capital and
thelatest.ventures, the round sees new investors AfricInvest, MUFG Innovation
Partners, Latitude and Kreos Capital backing the company.
Moove’s revenue-based financing model targets drivers with
little or no access to credit through its revenue-based financing model, where
the money they generate through their work with the vehicle repays the loan.
The start-up was born out of a desire to fill a gap in auto financing in Africa for cars, bikes
and trucks. Chief executive Ladi Delano said that the "vision" of the
company has now expanded as it looks to Europe, Asia and the MENA region.
"What we've come to learn is that the same problem that is
unfortunately so ubiquitous and widespread and acute on the continent in
respect to lack of access to vehicle financing, for those that need it most, is
also as prevalent in emerging markets in the MENA region and in Asia,"
Delano said.
"We'll also be launching in Europe as well. We'll be
launching in seven new markets over the next six months in Asia, in the MENA
region and in Europe."
According to the start-up, fewer than 5% of new cars in Africa
are bought through financing unlike markets in Europe where this is the norm.
Specifically in Europe, Moove will be targeting immigrant workers that need
cars to work on various platforms.
With the new funding – which is a mix of equity and debt – in
tow, Moove is planning to launch additional financial services products this
year.
Other significant investments for the company will be in
electric vehicles and financing more female drivers.
"We do have the opportunity to drive and to lead the
electrification of mobility, definitely on the ride-hailing side and so that is
a very clear focus to us as we start to launch specifically in these new
geographic regions. In the MENA region, the majority of our vehicles, if not
all, will be EVs and in the European region they will 100% be EV."
He added that there are few auto financing services out there
that are tailored for women.
"Unfortunately, specifically in the markets that we operate
within, there haven't, prior to Moove, been financing options or vehicle access
options that were actually designed to meet the day-to-day role of women,"
he said.
"There's flexibility in [Moove’s product] in the number of
days that they work or the number of hours that they want to put in and just
the general repayment profile."
Moove said it is committed to having 50% of its customers
female. The company did not disclose any of its current customer numbers.
Source: Forbes
