(Ecofin Agency) - Moove Africa, a mobility fintech startup operating in six Sub-Saharan African markets, is raising more funds to expand further on the continent. The transaction is the first it ever concluded with an African bank.
Mobility fintech Moove Africa announced, Thursday (July 14), that it secured more than US$200 million in equity and debt financing since the launch of its activities in 2020.
The record volume was completed by a recent ZAR300 million (US$20 million) financing facility it secured from South African financial group Absa's corporate and investment bank. The deal is Moove Africa's first transaction with an African bank.
In the release announcing the deal, Morne Visagie, Head of Structured Asset Finance at Absa Corporate and Investment Banking (Absa CIB), expressed his delight over the completion of “this complex transaction with Moove."
It “has been an exciting journey over 18 months. This transaction enables the conventionally unbanked to gain access to finance, enjoy the benefits of their efforts and sustainably build a brighter future,” Moove Africa writes.
Three months before that transaction, Moove Africa had secured US$105 million in debt and equity to expand its presence in seven new markets in Asia, Europe, the Middle East, and North Africa (MENA).
With the additional US$20 million recently obtained, the fintech plans to expand its offers and consolidate operations in South Africa. “Since first launching in South Africa during Q4 2021, Moove has experienced rapid growth, and this latest funding will enable the company to strengthen its product offering and create more jobs. […] Moove will continue to scale its revenue-based vehicle financing model in South Africa, creating more jobs for mobility entrepreneurs to earn a living and own their vehicle,” it informs.
In Africa, the mobility space is still very fragmented with mostly informal actors. The continent has the lowest per capita car ownership rate, with more than 1 billion Africans having limited or no access to car financing. Despite this, the sector represents an opportunity, explains fintech Moove Africa, which operates in 13 cities on three continents.