Barely two months after opening its first office in East Africa, Africa’s Mobility Fintech and Uber’s only car supply partner in Africa, Moove, has secured a $10 million financing facility, backed by NBK Capital Partners and Mezzanine Fund II.
Moove is NBK Capital Partners’ first investment in Africa, demonstrating the potential for a mobility platform like Moove to fill the continent’s automotive financing deficit. The latest investment funding, announced on Tuesday, is the Fund’s sixth asset-backed venture debt as advised and is aimed at assisting Moove’s planned expansion in West Africa.
Moove’s Co-Founder and Chief Executive Officer, Ladi Delano speaking on the new milestone, acknowledge that “NBK Capital Partners Mezzanine Fund’s financing comes at a fantastic time for our company and is intelligently structured for our use case.”
“This investment brings our total funding raised to date to US $ 78 million and will fuel our continued growth trajectory as we expand our regional operations to empower more mobility entrepreneurs. We are grateful to be working with a firm that supports our vision to build the first mobility fintech for African markets, tackling the problem of lack of access to credit for millions. “
According to the company executives, since Moove began operations in 2020, more than 2 million journeys have been covered by Moove-financed vehicles.
Providing up to 95% of the purchase price
Moove, founded in 2019 by Ladi Delano and Jide Odunsi, democratizes vehicle ownership by offering revenue-based vehicle finance to mobility entrepreneurs across Africa. Prior to starting Moove, the British-born Nigerians with degrees from the London School of Economics, Oxford University, and MIT had successfully created three previous firms on the continent.
Moove, which is also Uber’s official vehicle finance and vehicle supply partner in Sub-Saharan Africa, provides vehicle financing for cars, motorcycles, and trucks to mobility entrepreneurs throughout the continent using its alternative credit scoring algorithm and novel revenue-based financing model.
Within five days of signing up, the company offers customers an opportunity to acquire loans to buy new cars with a financing facility of up to 95% of the purchase price.
Customers may pay a percentage of their monthly income to repay their loans over a period of 12, 36, 48, or 60 months using the Moove app, which keeps track of all transactions and allows them access to other financial products on the platform.
Africa has a population of 1.3 billion people, with 43% living in cities and rising, and only 900,000 total new car sales in 2019, compared to 17 million in the United States.
So far, Moove-financed cars have completed over 1.6 million trips and travelled over 20 million kilometres across the company’s markets.
The organization presently operates in six locations spanning Ghana, Nigeria, South Africa, and Kenya, with the intention of growing across Africa.
Confidence in growing model
Speaking on the recent financing, Yaser Moustafa, Chief Executive Officer of NBK Capital Partners, reaffirmed that “We are very excited to partner with Moove on its journey to transform access to credit for millions of people across the African continent,”
“The company is driven by strong founders who possess a unique, long-term vision for success, one built on the empowerment of individuals from every socioeconomic class across the region, but also a genuine commitment to social and environmental sustainability.”
According to Sikander Ahmed, Managing Director and Head of Private Credit at NBK Capital Partners, the company is more than pleased to be entering into a partnership with Moove at this critical time.
“We are proud to support Moove’s management at such a vital time in the company’s expansion. We believe our flexible financing solutions are the reason why an increasing number of rapidly growing companies have come to rely on us for proven solutions to the many complex financial situations in which they find themselves.” –Sikander Ahmed, Managing Director and Head of Private Credit at NBK Capital Partners
Using our alternative credit-scoring technology and revenue-based model, Moove is allowing more women to access funding and become mobility entrepreneurs, ” said Jide Odunsi, Co-Founder and Chief Executive Officer of Moove.
“We’re dedicated to having at least 50% of our clients be women, giving them the tools, services, and flexibility they need to be productive and successful, even if they’ve previously been excluded from more formal work opportunities.”
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