Moove secures $105M. The African mobility fintech provides vehicle finance to Uber and other gig network drivers, and it has raised a new Series A2 round of funding.
Existing investors Speedinvest, who were lead investors in the company’s Series A, are among the new round’s investors.
This round consisted of a $65 million equity investment and a $40 million debt investment.
New investors such as AfricInvest, MUFG Innovation Partners, Latitude, and Kreos Capital also took part.
This announcement is coming almost seven months after the fintech closed its $23 million Series A round and just a month after the Moove closed $10 million in debt financing.
Since its inception in 2020, the firm has expanded to six African cities: Lagos, Accra, Johannesburg, Cape Town, Nairobi, and Ibadan.
Moove is a flexible solution for drivers who wish to enter into the ride-hailing business without having to borrow from car owners or take out bank loans to finance automobiles purchased from dealerships.
The following is how it works: Drivers register on the platform, are validated, and then trained and sign contracts with Moove in order to obtain loans to purchase or rent automobiles.
The company enrolls these drivers on Uber’s platform—the company’s only partner in Africa—and deducts weekly rental fees from their profits before distributing the balance to their accounts.
The loans are for 12 to 48 months, and when drivers repay them (at an annual interest rate of 8 to 13 percent), they own the automobiles, according to the firm.
The revenue-based car finance platform claims it will expand this approach to other vehicle classes, such as three-wheelers and buses.
While the new Series A2 round will help Moove scale across its current territories, it will also aid the company’s expansion into new countries outside of Africa.
Over the next six months, Moove will focus on seven additional markets in Asia, the Middle East, and Europe.
The total funding raised by Moove is $174.5 million in debt and equity. In its newer markets, Moove will encounter new competition from Carro in Southeast Asia, Drover in the United Kingdom, and Virtuo in France.