UAE’s KAAF Investments and Spartech Ventures participate in Nigeria-based Moove’s $23 million Series A round
- UAE’s KAAF Investments and Spartech Ventures have invested in Nigeria-based auto-financing startup Moove’s $23 million Series A, led by Speedinvest and New York-based Left Lane Capital.
- Other investors participating in this round include DCM Ventures, Clocktower Technology Ventures, the latest.ventures, London-based LocalGlobe and Emso Asset Management, California-based Tekton Ventures, Roka Works, Verod Capital Management, Kepple Africa Ventures, New York-based FJ Labs and Palm Drive Capital and Victoria van Lennep, co-founder of Lendable.
- Moove provides up to 95 per cent in vehicle financing to its customers, which can be paid back either in 24, 36, or 48 months using a percentage of their weekly earnings.
- The company will use the funding to expand to more states in Nigeria, plug the gender financing gap while creating job opportunities both within Moove and for its customer base
- A year after its founding in 2019, Moove raised a $5.2 million seed round and launched officially in June 2020.
Nigeria-based auto-financing startup, Moove has announced a $23 million Series A to build a full-service mobility fintech that democratises vehicle ownership across Africa. The round was led by global VC, Speedinvest and New York-based Left Lane Capital.
Others include DCM Ventures, Clocktower Technology Ventures, thelatest.ventures, London-based LocalGlobe, California-based Tekton Ventures, New York-based FJ Labs, and New York-based Palm Drive Capital.
The list continues with Singapore-based Roka Works, Dubai-based KAAF Investments, Abu Dhabi-based Spartech Ventures, California-based Class 5 Global, and Victoria van Lennep, co-founder of Lendable.
Africa focused VC Verod Capital Management, Kepple Africa Ventures, and London-based Emso Asset Management — one of Moove’s existing lenders — joined the round.
The company says this is the first African investment by many of the US-based VCs in this round. This brings Moove’s total funding to $68.2 million — $28.2 million in equity and $40 million in debt.
According to Technext, Chisom Anoke, Moove Africa’s Country Manager, says this funding would enable the company to expand into more states in Nigeria, increase gender equality in the industry while creating job opportunities both within Moove and for its entrepreneurial customer base.
Founded in 2019 by Ladi Delano and Jide Odunsi, the co-founders initially bootstrapped the company. However, in 2020, Moove raised a $5.2 million seed round and launched fully in June 2020.
Moove’s business model involves providing up to 95% in vehicle financing to its customers, which can be paid back either in 24, 36, or 48 months using a percentage of their weekly earnings.
The company also has a Flexi-Rental option which gives customers access to new cars for a weekly rental fee. Moove aims to ensure 60% of all loans are used to purchase electric or hybrid vehicles. A trend which seems to be gaining ground in Africa.
Access to vehicle financing in Africa is a struggle. In Nigeria, for example, as of 2016, Deloitte reveals that only 2% of Nigerians could afford to pay for new vehicles. Quite unimpressive numbers for a country that has a population of over 200 million.
“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 become mobility entrepreneurs safely.
“We help people buy new cars who otherwise couldn’t afford them. And then, using the vehicle as a mobility entrepreneur, they’re able to earn money, which allows them to pay off the vehicle over time,” he concludes.