Moove, a mobility and fintech integrated company has raised $23 million in Series A funding to further achieve its vision, expanding across the African continent.
Led by Speedinvest and Left Lane Capital, the Series A round included investors such as DCM, Clocktower Technology Ventures, thelatest.ventures, LocalGlobe, Tekton, FJ Labs, Palm Drive Capital, Roka Works, KAAF Investments, Class 5 Global, Victoria van Lennep, co-founder of Lendable, Verod, Kepple Africa Ventures, and Emso Asset Management, an existing investor in the company.
Speaking on the investment, Stefan Klestil, a general partner at Speedinvest, said:
“With Ladi and Jide at the helm of a world-class team, and their unique approach to vehicle financing, Moove has quickly established itself as one of the most exciting tech companies in Africa.”
“The company’s expansion to three cities in under 12 months demonstrates the huge demand for vehicle financing in Africa, where just five percent of new cars are purchased with financing, compared to 92 percent in Europe,” he concluded.
Built on a goal to solve the problems of unaffordability and inaccessibility in car ownership, Moove was founded by Ladi Delano and Jide Odunsi in 2019 but was launched around June 2020.
“It became clear to us that people aren’t buying cars in Africa because there’s no access to finance. When you look anywhere else in the world, you have financing in most parts of the developed world when you try to buy a car. It’s that way in the UK, or Europe and the US. And that’s what’s driving mobility drive and vehicle sales,” Delano told TechCrunch in an interview.
Headquartered in the Netherlands, the company operates in Lagos, Accra, and Johannesburg, and claims to have garnered over 19,000 drivers on its platform, while about 13,000 are on its waitlist. The company also claims to have grown 60% monthly since last year.
A revenue-based vehicle financing model for mobility entrepreneurs who would work, generate income and pay back after a specified period, is used by the company.
This is a form of loan whereby vehicles are sold to drivers while receiving financing of about 95% of the purchase within five days of signing up. Payback periods are made flexible.
With the Series A funding, Moove plans to expand into new markets while developing and launching new products and services with a drive to gain additional shares among its competitors. The company intends to extend its feature, which is already functioning in Ghana, where wallets are made available to drivers without bank accounts, so they can make and accept payments.
The managing partner of Left Lane Capital, Dan Ahrens, commended Moove’s technology, stating that the startup has done a great job, empowering thousands to earn a new source of income.
“As we look ahead, the potential for that technology and the Moove team to expand even further is very exciting. They have the opportunity to become a full-service mobility fintech and expand their offerings to insurance and other financial services, ” he said.