Uber Technologies Inc. is currently engaged in discussions to support African vehicle-financing startup Moove, in a funding round potentially reaching $100 million, according to sources familiar with the development.
The US-based ride-hailing company is set to join a consortium of investors in this capital raise round. Undisclosed sources, who requested anonymity due to the confidential nature of the negotiations, revealed that the financing would elevate Moove’s enterprise value to approximately $750 million, up from its previous valuation of around $650 million.
The funding round remains ongoing, and its final size may fluctuate between $75 million and $100 million, depending on various factors, as indicated by the sources.
Africa, known for its rapidly growing population, particularly among the youth, has witnessed an increasing adoption of technology for various services, including banking, ride-hailing and entertainment. This trend is notable in a region historically lacking in traditional infrastructure and institutional support.
Moove stands among the flourishing technology-driven services emerging from the continent, alongside companies like Flutterwave and Interswitch, with Nigeria serving as a hub for such innovative startups. Notably, several of these ventures have attained “unicorn” status, denoting startups with valuations exceeding $1 billion.
Moove, founded in Lagos in 2020 by Nigerian entrepreneurs Ladi Delano and Jide Odunsi, addresses the challenge of vehicle financing for prospective drivers working with ride-hailing services. Since its inception, the company, now headquartered in Amsterdam, has expanded its operations across Africa, the UK, the UAE, and India.
The startup employs a credit-scoring mechanism to extend financing to drivers seeking to purchase new vehicles for ride-hailing, logistics and deliveries. This financing is structured to deduct a portion of the drivers’ weekly earnings. Additionally, Moove has forged a robust partnership with Uber, enhancing its market presence and accessibility.
In August 2023, Moove successfully concluded a $76 million equity and debt round, attracting investments from notable entities such as BlackRock Inc. and Mubadala Investment Co., highlighting investor confidence in the startup’s growth trajectory.