After obtaining $105 million in its latest round of funding, African company Moove Africa, which provides revenue-based car finance, will expand to seven additional emerging countries in Europe, Asia, and the Middle East in the next six months, according to its CEO.
Moove, which launched in 2020, uses a credit rating system to give customers vehicle financing based on a percentage of their weekly earnings for ride-hailing, logistics, and deliveries.
Moove is one of the new waves of Nigerian-born firms that are disrupting financial services in Africa, where the majority of people lack access to bank loans.
Ladi Delano, CEO, and co-founder of Moove, said the company was founded to tackle a problem for Uber, which had a lot of demand at the time with people ordering rides but few drivers with cars in Lagos. Since then, it has shifted its focus to logistics and delivery vehicles.
“The business has been great. Since its introduction, demand has grown at an exponential rate, with almost every month seeing a 50% increase in demand “It’s been a month,” he told reporters.
In Nigeria, Ghana, Kenya, and South Africa, Moove has six locations.
Moove will extend funding to buses, trucks, and three-wheelers as part of its expansion, and it expects to sustain the same pace of growth this year, according to Delano.
Fintech startups are sprouting on a continent where the majority of people are still unbanked, disrupting the way traditional banks lend, which requires collateral that many African people and small businesses lack.
Existing investors Speedinvest and Left Lane Capitals led Moove’s current investment round, with new investors AfricInvest and Kreos Capital joining in.
