Mubadala and BlackRock provide Moove with a $76 million equity and debt financing round.
Moove, an African mobility fintech that specializes in offering vehicle financing to drivers operating on ride-hailing platforms such as Uber and other gig networks, has secured $78 million in fresh funding aimed at bolstering its operational reach and investments across the markets it serves, as reported by TechCrunch.
According to a statement released by the company, the recent funding round encompasses $28 million in equity from a mix of both new and existing investors. Mubadala Investment Company takes the lead among investors. The funding also includes $10 million in venture debt sourced from funds and accounts managed by BlackRock, along with $38 million in previously undisclosed funds that were raised over the past year.
Ladi Delano, the CEO and co-founder of Moove, highlighted that the financing led by Mubadala will be pivotal in reinforcing the company's presence in already thriving markets such as the UAE, India, the UK, and South Africa. Additionally, the funds will be directed towards enhancing customer experience and accelerating product development, with the aim of achieving group-wide profitability within the next year.
Recent Moove actions, such as a "dismissal" push and a driver strike in May, may have been carefully coordinated to meet growth objectives. These tactics have drawn criticism and drawn attention to drivers' complaints against the firm and as a result this African-founded startup, has secured a $325 million funding round, marking its first investment in the market.
The company, founded in Lagos, Nigeria in 2020, uses revenue-based financing to provide flexible options for individuals in the ride-hailing or gig economy. Moove's unique ride-hailing financing model involves drivers undergoing a verification process, receiving training, and signing contracts to access loans for purchasing or renting vehicles. The company collaborates with Uber, Glovo, Kobo360, and Swvl to onboard drivers as gig workers.
Moove's model deducts weekly rental fees from drivers' earnings before transferring the remaining balance to their accounts. The repayment period spans between 12 and 48 months, with interest rates ranging from 8% to 13% annually. Moove's rapid growth is evident, with over 11 million trips completed in Moove-financed vehicles since its inception. The company's innovative use of alternative credit scoring technology has broadened access to auto finance for customers who might have been ineligible for such financial services.
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