Uber’s African fleet manager Moove nets $23 mn funding

 Uber’s African fleet manager Moove nets $23 mn funding

Moove founders Jide Odunsi and Ladi Delano

Moove, a Nigeria-anchored mobility fintech that is the fleet manager for global cab-hailing major Uber in Africa, has raised $23 million in Series A funding led by Speedinvest and Left Lane Capital.

Speedinvest is an early-stage venture capital firm with €450 million and 40 investors based in Berlin, London, Munich, Paris, Vienna and San Francisco. Left Lane Capital is a New York-based investment firm chasing internet companies across Series A to C rounds.

The round also saw participation from DCM, Clocktower Technology Ventures, thelatest.ventures, LocalGlobe, Tekton, FJ Labs, Palm Drive Capital, Roka Works, KAAF Investments, Spartech Ventures, Class 5 Global, and Victoria van Lennep, co-founder of Lendable.

Verod, Kepple Africa Ventures and one of Moove’s existing lenders, Emso Asset Management, also joined the round.

This brings Moove’s total funding to $68.2 million, including $28.2 million in equity and $40 million in debt. Moove is the first investment in Africa for many of its US VC backers.

The announcement comes three months after The Capital Quest first reported that Moove was raising $100 million through a mix of debt and equity.

Moove embeds its alternative credit-scoring technology onto ride-hailing and e-logistics platforms, which allows access to proprietary performance and revenue analytics of mobility entrepreneurs to underwrite loans.

The company provides loans to its customers by selling them new vehicles and financing up to 95% of the purchase within five days of sign up. Its customers can choose to pay back their loans over two-four years, using a percentage of their weekly revenue.

Co-founders Ladi Delano and Jide Odunsi are British-born Nigerians, educated at the London School of Economics, Oxford University and MIT. They have built three other businesses in Africa over the last eight years through their venture studio, Grace Lake Partners.

Delano is a serial entrepreneur and Odunsi is a former investment banker at Goldman Sachs and former management consultant at McKinsey.

“In a continent full of opportunity, mobility is key to moving economies forward and this funding contributes to our ability to provide revenue-based financing, as Moove empowers Africans to safely become mobility entrepreneurs,” said Delano.

Moove is Uber’s exclusive vehicle financing and vehicle supply partner in Sub-Saharan Africa. Moove-financed cars have completed more than 850,000 Uber trips covering over 13 million km across the continent to date.

The startup was initially bootstrapped by its co-founders with seed-stage funding from Future Africa, an Africa-focused fund led by Iyin Aboyeji, who was also part of founding team at Andela and Flutterwave.

The Series A funding will allow Moove to expand into new markets as well as develop and launch new products and services. The equity raise follows a year of momentum with the launch of three cities and 60% month-on-month growth so far.

Stefan Klestil, general partner at Speedinvest, said, “The company’s expansion to three cities in under 12 months demonstrates the huge demand for vehicle financing in Africa, where just 5% of new cars are purchased with financing, compared to 92% in Europe.”

Vivek Sinha

The Capital Quest