Uber Technologies Inc. is reportedly in talks to invest the sum of $100 million in African vehicle-financing startup Moove.
This is according to a Bloomberg report citing sources familiar with the deal. According to the report, the US ride-hailing firm will join a group of investors in the cash raise, which will push Moove’s enterprise value to about $750 million from about $650 million.
The funding round has not yet concluded and the final figure could still change, ranging between about $75 million and $100 million, Bloomberg quoted the sources as saying.
Moove’s fundraising spree
In 2023, Moove was the most funded startups in Nigeria having raised $76 million amid a funding slowdown in the Nigerian startup space.
- According to Moove, the $76 million raised last year was to build the largest tech-driven financial services platform for mobility entrepreneurs. This came as the largest single raise this year by any Nigerian startup.
- The financing consists of $28 million in equity, $10 million in venture debt from funds and accounts, and $38 million in previously undisclosed funds raised over the past year. BlackRock manages the venture debt, while Mubadala Investment Company led the equity round, which included new and existing investors.
- Earlier this month, Moove was also reported to have raised a debt funding of $10 million from Stride Ventures, a sector-agnostic venture debt fund.
- The mobility company, which entered India in 2023, states the new fund will help it strengthen its presence in the Indian market and expand operations to new cities, such as Delhi, Pune, and Kolkata.
Moove-Uber partnership
Uber named Moove the mobility fintech its official vehicle-financing partner in sub-Saharan Africa in 2020. This partnership allows drivers to access cars without a down payment, paying them off through daily installments from their Uber earnings.
Amsterdam-headquartered Moove, already Uber’s financing partner in Africa and India with operations in the UK and UAE, could see its partnership deepen if Uber’s potential $100 million investment comes to fruition, potentially enabling wider driver financing globally.
Nigerian-born Ladi Delano and Jide Odunsi founded Moove in Lagos in 2020 to help would-be drivers for ride-hailing services who couldn’t access vehicle financing.
The startup uses a credit-scoring system to provide financing to drivers to buy new vehicles for ride-hailing, logistics, and deliveries using a percentage of their weekly income.
