Moove, the world’s first mobility fintech, has secured R300 million (US$20 million) in funding from Absa Corporate and Investment Banking (CIB), bringing its total funding to more than $200 million since its launch in 2020. The latest round of funding will be used to expand the startup’s vehicle lending product to more clients in South Africa.
Moove, founded in 2020 by Ladi Delano and Jide Odunsi, democratizes vehicle ownership across Africa by offering revenue-based financing to mobility entrepreneurs in countries with limited access to credit. Moove provides vehicle finance to its customers to acquire brand new vehicles utilizing a percentage of their weekly revenue using its alternative credit scoring methodology.
Moove-financed vehicles have completed over 5 million rides to date, owing to tremendous demand and exponential growth throughout its six Sub-Saharan African regions.
The mobility space in Africa is highly fragmented and informal, and the sector represents an opportunity in a continent where high unemployment is rife. According to Statistics South Africa, over a third of South Africans were reported as unemployed during the first quarter of 2022, reaching a record 35.3% in Q4 2021. Moove will continue to scale its revenue-based vehicle financing model in South Africa, creating more jobs for mobility entrepreneurs to earn a living and own their vehicle.
Moove’s CEO and Co-founder, Ladi Delano, says, “At Moove, we pride ourselves on being a mission-led company that empowers its customers to earn their way to asset ownership through a sustainable source of employment. In Absa, we’re delighted to have the funding which will enable us to serve more Africans looking for a path to economic prosperity.”
“For decades, they’ve transformed the livelihoods of millions through access to financial services, making them an ideal partner for Moove to tackle this same mission in South Africa. With this new funding we’re strongly positioned to unlock new opportunities for mobility entrepreneurs across South Africa, helping them generate income and ultimately driving the economy forward.”
Despite Africa’s status as the world’s fastest-growing continent, it has the lowest per capita car ownership rate, with over 1 billion Africans having limited or no access to vehicle financing. Moove has emerged as part of a new generation of African-born fintechs to lead the charge in the “mobility fintech” sector. This white space addresses the continent’s acute vehicle financing problem and empowers mobility entrepreneurs to become more productive and successful.
Morne Visagie, Head of Structured Asset Finance at Absa CIB says, “We are delighted to close this complex transaction with Moove, which has been an exciting journey over 18 months. This transaction enables the conventionally unbanked to gain access to finance, enjoy the benefits of their efforts and build a brighter future in a sustainable way”
Moove is Uber’s largest fleet vehicle supply partner in EMEA and has partnerships with several other mobility marketplaces, including Glovo, Swvl, Sendy, and Kobo360 across ride-hailing, trucking & logistics, last-mile delivery, and mass transit. Since its initial launch in 2020, Moove has rapidly expanded to 13 cities across three continents.