Moove Africa, an African startup that provides revenue-based vehicle finance, announced its CEO. The company raised $105 million in its most recent round of funding.
Moove was launched in 2020 and uses a credit scoring method to finance customers’ vehicles to buy new cars for ride-hailing, logistics, and delivery. Customers pay a percentage of their weekly income to finance the vehicle purchase.
Moove is one of a number of startups born in Nigeria that are revolutionizing financial services across Africa.
Chief executive and co-founder Ladi delano explained that Moove was created initially to solve a problem faced by Uber. There was a lot of demand at the time for Uber’s services, but few drivers were available in Lagos. Since then, it has moved to finance vehicles for logistics or deliveries.
“The business has just been phenomenal. From the demand side it has just been exponential since launch, pretty much every single month we have grown 50% month-on-month,” he told Reuters.
From Johannesburg to Nairobi
Moove has six locations in Nigeria, Ghana and Kenya.
Delano stated that Moove’s expansion will see them extend financing to three-wheelers, buses, and trucks. Delano also said that the company expects to continue its growth this year.
Fintech startups are attempting to change the way traditional banks lend on Africa, a continent that has a large number of unbanked people. They require collateral that is not available to many small businesses and Africans.
Moove’s latest funding was led by existing investors, Speedinvest, Left Lane Capitals and new participation from others like AfricInvest and Kreos Capital.
In a statement, the company stated that at least 30% of vehicles it finances will be electric by next-year and at least half its customers will be female in the future.