Lagos based African mobility startup, Moove, has raised $76 million in new financing barely one month after its $8 million financing from Absa Corporate and Investment Banking (CIB).
This latest raise led by Mubadala Investment Company, includes $28 million in equity from new and existing investors, $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.
The new funding brings Moove’s total funding to over $335 million bringing the startup more than halfway to becoming a unicorn at $550 million valuation.
Expressing his excitement about the newly raised funds, co-founder Ladi Delano hinted on what the funding meant to him. He 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.”
According to him, the funding will be used to drive the achievement of the company’s profitability goal within the next 12 months.
Delano added, “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.”
Moove was founded in 2020 in Lagos, Nigeria by co-CEOs Ladi Delano and Jide Odunsi.
The startup provides flexible options for drivers who want to get into the business of ride-hailing or other gig economy services without having to borrow cars from owners or take bank loans to purchase cars.
Interested drivers only need to sign up on the platform and get verified, after which they get trained, then sign with Moove to access loans to buy or rent cars.
The company gets these drivers on ride hailing platforms including Uber which is 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 loan durations are scheduled between 12 and 48 months, at an interest rate of 8% to13% per annum. Once the loan is paid up, the driver has full ownership of the car.
Moove has extended its reach and operations to 13 cities across Africa, Europe, the Middle East, and Asia through countries including Nigeria, Egypt, South Africa, Kenya, the U.K., India, and the UAE.