African mobility startup, Moove, has raised $76 million in new financing as it pushes for profitability through its global expansion.
Coming barely a month after it raised $8 million, the new funding brings the company’s total funding to over $335 million. On the back of the latest funding, Moove is now over halfway to becoming a unicorn at $550 million valuation.
Moove said the new funding will be used to achieve its objective of profitability over the next 12 months and finance the company’s push into new, larger markets, as well as help it grow in existing locations in Europe, the Middle East, and Africa.
The latest raise includes $28 million in equity from new and existing investors led by Mubadala Investment Company, $10 million in venture debt from funds and accounts managed by BlackRock, and $38 million in previously undisclosed funds raised during the prior twelve months.
According to a statement from the company, the funding would serve as a catalyst for its expansive global presence and unwavering commitment to transforming financial services for gig workers in the mobility sector.
Strengthened by global backing
Commenting on the fundraising, Moove’s Co-Founder, Ladi Delano, said:
- “Our latest fundraise makes me extremely happy and proud to see that the Moove concept, which was born in Africa in 2020, and has since strengthened its position on the global stage, is being backed by and, most importantly, believed in, by two of the largest investors in the world. This is particularly true in the current fundraising environment.
- “We have grown fast since our inception in 2020. Although at times it hasn’t been easy, and we have had to make tough decisions along the way (and will continue to do so), these funds will ensure we achieve our company-wide primary objective of profitability within the next year, something that, as founder, I am incredibly excited about.”
According to Delano, the Mubadala-led financing will help Moove double down on already profitable markets including the UAE, India, UK, and South Africa, “as well as continuing to invest in our customer experience and accelerate our product development to deliver group-wide profitability within the next 12 months.”
What you should know
Founded in 2020 in Lagos, Nigeria by co-CEOs Ladi Delano and Jide Odunsi, Moove, via revenue-based financing, provides flexible options for drivers who want to get into the business of ride-hailing or other gig economy services without having to borrow from car owners or take bank loans to finance these cars bought from dealerships.
Drivers sign up on the platform and, once verified, are trained and sign contracts with Moove to access loans to buy or rent cars.
The company gets these drivers on Uber (its exclusive partner across Africa for ride-hailing) or other mobility platforms including Glovo, Kobo360 and Swvl as gig drivers.
Moove then deducts weekly rental fees from their earnings before transferring the balance to their accounts.
The loans are between 12 and 48 months, and when drivers repay them (at an 8% to 13% annual interest rate), they own the cars, according to the three-year-old startup.
Since its launch, the startup has expanded its operations to 13 cities across Africa, Europe, the Middle East, and Asia. The countries where Moove has a presence include Nigeria, Egypt, South Africa, Kenya, the U.K., India, and the UAE.