Moove raises $23million in Series A to adopt a good plan to make new cars affordable for drivers in Africa

Moove raises $23million in Series A to adopt a good plan to make new cars affordable for drivers in Africa

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MOOVE is an Integrated Mobility platform designed to enable all transport services, and service providers to interoperate, has raised $23million in Series A. The company orchestrates multi-modal trip planning, payment fulfillment with one seamless experience. Amist different international VC, a New York-based company Left Lane Capital led the round.

MOOVE, was founded by Ladi Delano and Jide Odunsi in 2019 and was launched in June 2020. The company also has a Flexi-Rental option which gives customers access to new cars for a weekly rental fee. It also aims to ensure 60% of all loans are used to purchase electric or hybrid vehicles, a trend which seems to be gaining ground in Africa.

The company is currently operating in Nigeria, Ghana, and South Africa. The company claims its financed cars have completed more than 850,000 Uber trips and currently enjoys a 60% month-on-month growth. It also provides loans to drivers by selling them new vehicles and financing up to 95% of the purchase within five days of sign up. They can choose to pay back their loans over 2years, 3 years or, 4years using a percentage of the weekly revenue generated while driving on Uber.

In Nigeria, owning a car is a luxury very few people can afford. In 2016, Deloitte, a global leader in professional services providing audit and assurance, consulting, financial advisory, risk advisory,

tax and related services reveals that only 2% of Nigerians could afford to pay for new vehicles which is quite unimpressive for a country that has a population of over 200million. It is a similar case across Africa, where car owners often sell used cars (Popolarly called Tokunbo car in Nigeria) between themselves because of the difficulty of accessing new ones due to the fact that there is no access to finance which is not so in other continents.

The founders saw it as a huge task to address this deficit and figured that deploying an asset financing model was the go-to approach. However, MOOVE says it is democratizing vehicle ownership by employing a revenue-based vehicle financing model. Hereby, this applies to only a subset of the driving population across the continent Moove calls mobility entrepreneurs which include drivers who work in the mobility space (car-hailing, ride-hailing and bus-hailing, among others).

Delano tells TechCrunch that inasmuch as Moove is changing how people have access to new cars in Africa, he wants the company to solve some of the unemployment problems facing the continent, even more so in Nigeria.

We look forward for this evolution, especially in Nigeria.

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