A new finance company that has pioneered a way for ride hailing drivers to pay for a new car directly from their Uber earnings, has raised $105 million to support its international expansion, particularly in developing markets.
Nigeria-based mobility fintech Moove has plans to extend its reach beyond Africa to Asia, Europe and the Middle East/North Africa.
The company provides revenue-based finance to Uber drivers, which it calls ‘mobility entrepreneurs’, to pay for a new car in markets with low access to credit. Moove customers use a percentage of their weekly earnings to make payments towards brand new vehicles.
Overcoming credit shortages
Poor credit penetration across Africa has restricted the ability of over 1 billion Africans to buy new vehicles, according to Moove, which cites statistics that fewer than 5% of all vehicles in Africa are purchased with finance compared to 92% in Europe.
Last August, Moove raised $23 million in a Series A round of funding, and said Moove-financed vehicles have since completed over 3 million rides.
EVs for Africa
At least 60% of the vehicles that Moove finances are electric or hybrid, helping to replace the older, more polluting secondhand vehicles that are typically remarketed from the rest of the world to the continent of Africa.
Ladi Delano, co-founder and co-CEO at Moove, said: “There are still millions of budding mobility entrepreneurs in emerging markets across the world who have limited or no access to vehicle financing and marketplaces that are facing critical supply issues. With this new fundraise, we are well-positioned and well funded to help solve this global problem. We’re delighted to have the support of leading investors across the globe who will be integral in enabling us to take our Nigerian-born model to the world.”
Credit: Source link