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“Uber’s decision to back Moove, marking its first investment in an Africa-founded startup, suggests a concerted effort to ensure a steady supply of drivers for its ride-hailing platform,”said a source familiar with the deal. Joining Uber in this round is the sovereign wealth fund Mubadala and a host of other investors, propelling Moove’s post-money valuation from $550 million to $750 million. With these funds, Moove plans an aggressive expansion of its revenue-based vehicle financing platform, aiming to penetrate 16 markets by the end of 2025. “Moove’s expansion into new markets will focus on electrification, laying the groundwork for a more sustainable and accessible mobility ecosystem,” said Moove CEO Ladi Delano as seen on TechCrunch’s website. Moove’s approach to vehicle financing involves purchasing fleets of vehicles and then offering them to drivers through their platform. Their software evaluates credit scores to facilitate drivers’ acquisition of new vehicles for ride-hailing, logistics, and deliveries. This diverse fleet ranges from conventional options like Toyotas and Suzukis to electric vehicles (EVs) such as Teslas. Uber’s strategic move to back Moove underscores its vested interest in securing a robust supply of drivers, particularly in African markets, where regulatory hurdles and competition pose challenges. “Uber’s investment in Moove aligns with our commitment to a fully zero-emission fleet by 2040,” said an Uber spokesperson.
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However, Moove grapples with various challenges in Africa, including fuel price fluctuations and exchange rate risks, impacting drivers’ sustainability. In response, Moove has implemented initiatives like reduced weekly remittances and flexible payment plans to alleviate these pressures. Despite these hurdles, Moove remains steadfast in its mission to democratize access to vehicle financing and foster employment opportunities across Africa. The company’s growth strategy involves geographical diversification and expansion across various market segments, with Southeast Asia and Latin America on the horizon. “Moove believes in the potential of the African market and will continue to invest accordingly,” said CEO Ladi Delano. This funding round epitomizes Moove’s rapid growth trajectory, with a substantial increase in annual recurring revenue from $90 million to $115 million. The company aims to achieve profitability in the upcoming financial year, propelled by its expansion efforts and strategic partnerships.
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Following this investment, Moove has relocated its headquarters to the UAE, underscoring its commitment to bolstering its presence in key markets while laying the groundwork for future expansion. “Moove will continue to assess opportunities globally and expand into markets where we see a clear path to achieving profitability,” said CEO Ladi Delano.
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