(Ecofin Agency) - Moove, an African mobility fintech that provides revenue-based vehicle financing to mobility entrepreneurs across Africa has raised $23 million in a Series A round. Speedinvest and Left Lane Capital were the lead investors, with participation from DCM, Clocktower Technology Ventures, thelatest.ventures, LocalGlobe, Tekton, FJ Labs, Palm Drive Capital, Roka Works, KAAF Investments, Spartech Ventures, Class 5 Global, and Victoria van Lennep - co-founder of Lendable, Africa specialist, Verod Kepple Africa Ventures, and Moove’s existing lenders.
Moove Africa has raised a total of $68.2M made of $28.2 million equity and $40 million debt funding over three rounds from investors, including the IFC Venture Capital Group and Speedinvest most recently.
“In a continent full of opportunity, mobility is key to moving economies forward and this funding contributes to our ability to provide revenue-based financing, as Moove empowers Africans to safely become mobility entrepreneurs,” said Ladi Delano, co-founder of Moove. “We help people buy new cars who otherwise couldn’t afford them. And then, using the vehicle as a mobility entrepreneur, they’re able to earn money, which allows them to pay off the vehicle over time,” he added.
The mobile fintech provider will use the funding round to build a full-service mobility fintech that will create flexible options for drivers to own cars across Africa. According to Deloitte, the market opportunity in Africa is vast, coupled with high growth prospects, yet the automotive market is still underdeveloped with the potential to grow across the automotive value chain including vehicle sales, aftersales, vehicle assembly and production.
According to Mordor Intelligence, the automotive market in Africa was valued at $28.45 billion in 2020 and is expected to reach $39.87 billion by 2026. However, the outbreak of the pandemic, COVID-19, disrupted the market, leaving the majority of markets struggling to recover.