One of Africa’s foremost ride-hailing platforms, Moove is seeking to raise over $300 million in fresh equity at a valuation exceeding $2 billion. Moove, which is backed by Uber was founded in 2020 by Nigerian entrepreneurs Ladi Delano and Jide Odunsi.
In five years, the company has become a major platform providing vehicle-financing solutions to drivers who would otherwise lack access to credit. Moove enables drivers to acquire vehicles for ride-hailing, logistics, and delivery, repaid via a percentage of weekly earnings through its ride-to-own program.
Moove’s Desire for Financing
Bloomberg reports the new round of financing make Moove one of the largest African startups by valuation and reinforces its credibility in new markets such as India, Mexico, and the UAE, where it has already established operations.
Moove’s distinct mode of operation has made the company a valuable partner to Nigerians with limited access to the needed capital to purchase the vehicles needed for their e-ride operations.
This distinct character has made it an ally for Uber in Nigeria and a credible options for riders, the new finacing round would thus provide the needed instrument to expand its scale of operations.
Challenges Faced by Moove Drivers
Drivers who have keyed into the platform so far have been weighed upon by the repayment costs usually financed through a percentage of every ride plus commission to Uber which eats into profit margins.
Moove’s ability to secure this financing could come in handy for riders as it could lead to longer repayment windows or subsidized services.