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Moove Raises $23m to Expand Vehicle Ownership in Africa
By Adedapo Adesanya
Moove, an African mobility fintech, has raised $23 million in Series A funding to build a full-service service that democratizes vehicle ownership in Africa.
The round was led by Speedinvest and Left Lane Capital, 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 one of Moove’s existing lenders, Emso Asset Management, also joined the round.
This brings Moove’s total funding to $68.2 million, including $28.2 million in equity and $40.0 million in debt.
This makes Moove the first investment in Africa for many of its United States’ VC backers, underscoring the opportunity for a platform to address the continent’s vehicle financing gap which has more than a billion people who have limited or no access to vehicle financing – and the lowest per capita vehicle ownership in the world.
The new Series A funding will also allow Moove to grow and expand into new markets as well as develop and launch new products and services.
The equity raise follows a year of momentum and success for Moove with the launch of three cities and 60 per cent month-on-month growth so far.
The market opportunity in Africa is vast with a population of 1.3 billion people, with 43 per cent in urban areas and growing, and in 2019 had fewer than 900,000 total new vehicle sales compared to 17 million in the US.
Moove embeds its alternative credit-scoring technology onto ride-hailing and e-logistics platforms, which allows access to proprietary performance and revenue analytics of mobility entrepreneurs to underwrite loans.
The company’s model is to provide loans to its customers by selling them new vehicles and financing up to 95 per cent of the purchase within five days of sign up.
Moove customers can choose to pay back their loans over 24, 36, or 48 months, using a percentage of their weekly revenue.
All Moove customers sign up to the Moove app to manage all transactions and access other financial products on the platform.
Speaking on the goal with the new round, the co-founder of Moove, Mr Ladi Delano says, “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.
“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.”
Speaking on the development, Mr Stefan Klestil, General Partner at Speedinvest, said, “With Ladi and Jide at the helm of a world-class team, and their unique approach to vehicle financing, Moove has quickly established itself as one of the most exciting tech companies in Africa.
“The company’s expansion to three cities in under 12 months demonstrates the huge demand for vehicle financing in Africa, where just five per cent of new cars are purchased with financing, compared to 92 per cent in Europe.”
On his part, Mr Dan Ahrens, Managing Partner at Left Lane Capital noted, “Moove’s technology is fundamentally changing access to mobility and empowering thousands to earn a new source of income.
“As we look ahead, the potential for that technology and the Moove team to expand even further is very exciting. They have the opportunity to become a full-service mobility fintech and expand their offerings to insurance and other financial services.”
Moove was initially bootstrapped by its co-founders, Messrs Ladi Delano and Jide Odunsi with seed-stage funding from Future Africa, an Africa focused fund led by Mr Iyin Aboyeji, who was a founder at Andela and Flutterwave.
Moove is a mission-led company that’s committed to giving 100 per cent of mobility entrepreneurs access to affordable credit and ensuring that 50 per cent of its customers are women.
It also aims to ensure that at least 60 per cent of the vehicles it finances are electric or hybrid vehicles as part of its commitment to improving road safety and vehicle emissions on Africa’s roads.
By Adedapo Adesanya
The Lagos State Government has reiterated its commitment to creating an eco-friendly state with fewer cars on the roads in the future.
The Lagos State Commissioner for Transportation, Mr Oluwaseun Osiyemi, said this during a presentation at the closing of the fifth Lagos Real Estate Marketplace Conference and Exhibitions in Lagos.
Mr Osiyemi said that the commitment is in line with the T.H.E.M.E.S Agenda of Mr Babajide Sanwo-Olu’s led administration, expressing concerns that traffic congestion costs the state trillions of Naira in budget deficits annually.
The transportation commissioner noted that the heavy reliance on road transportation, which accounts for 90 per cent of travel in Lagos, is unacceptable and unsustainable.
The Commissioner stated that water and rail transportation account for only two per cent of the means of transportation, highlighting their gross underutilisation.
Mr Osiyemi emphasised that every sector in the state must be robust enough to contribute significantly to the wellbeing of its residents, as Lagos accounts for 30 per cent of the nation’s gross domestic product.
He expressed the state’s readiness to maximise the use of intermodal transportation system, to help upscale socio-economic activities in the metropolis and reduce man-hour loss to traffic.
In a panel discussion, the Special Adviser to Governor Sanwo-Olu on Climate Change and Circular Economy, Ms Titilayo Oshodi, emphasised the need for the state and its stakeholders to adopt a purposeful approach to waste management.
Ms Oshodi highlighted the importance of a circular economy in recycling, repurposing and reusing waste effectively.
She noted that several policies were already in place in the state for managing waste, urging producers and manufacturers across various sectors to collaborate with the state government to contribute to carbon reduction efforts.
Other panellists including Ms Stella Okengwu, Chief Executive Officer of Winhomes, said that the current economic situation calls for housing to be built based on clear demand that aligns with people’s budgets while Mr John Oamen, Co-founder of Cutstruct, urged the state government to promote the digitisation of construction procurement.
This, he added, would enhance the efficiency and practices of the construction and real estate sectors.
By Modupe Gbadeyanka
There are plans by Heirs Insurance to introduce insurance products tailored for vehicle owners, a statement from the underwriting firm has disclosed.
According to the subsidiary of Heirs Holdings, this low-cost motor insurance package known as the Flexi Comprehensive Motor Insurance Plan will provide the benefit of a comprehensive motor insurance plan for a fraction of the cost, addressing the financial realities many Nigerians face.
The underwriting company announced the plan to introduce this package as it launched a new campaign designed to reward its customers.
This initiative themed Unwrapping Smiles will bring hope to individuals, families, and communities this holiday season, and will run from December 10 to December 31, 2024.
It will feature community-focused outreaches, including Christmas gifts and exciting rewards to put smiles on the faces of Nigerians. It will also include the launch of a holiday-watch web film known as The Underwriters for all Nigerians to enjoy.
“At Heirs Insurance Group, we are committed to providing much more than insurance. In a season when many Nigerians seek hope and reasons to smile, we are proud to offer initiatives that inspire and uplift,” the Chief Marketing Officer of Heirs Insurance, Ms Ifesinachi Okpagu, said.
By Adedapo Adesanya
Nigeria’s Presidential Compressed Natural Gas Initiative (PCNGi) claims that investments in championing the CNG value chain have hit $450 million.
This was disclosed by Mr Michael Oluwagbemi, Project Director and Chief Executive Officer (CEO), PCNGi, during the 9th Edition of the Nigeria Energy Forum (NEF2024) Day 2, Virtual Event themed Energising Sustainable Industrialisation.
According to the PCNGi CEO, the amount goes into things like mother stations, daughter stations and refuelling stations as well as conversion centres which are starting to spring up across the nation.
Mr Oluwagbemi, represented by Mr Tosin Coker, the Head of Commercial, PCNGi, said the initiative had successfully converted more than 10,000 vehicles from petrol to CNG.
“By 2027, the initiative will have converted more than one million vehicles using petrol to CNG,” he said.
On incidents of explosion of vehicles using CNG, the CEO assured Nigerians that it had taken precautionary measures with different agencies of government to ensure safety.
Mrs Ibironke Olubamise, National Coordinator of the GEF Small Grants Programme (SGP), managed by UNDP, said the SGP was investing in youth energy innovation for economic growth and environmental sustainability.
Mr Daniel Adeuyi, NEF Group Chairman, said, “The event featured three super sessions on Energising Industrial Revolution, Community Climate Action by GEF-SGP UNDP and Clean Energy Innovations.
“The sessions are to share lessons learnt from real-life projects and build capacity of young entrepreneurs and cross-industry professionals.”
Mr Joseph Osanipin, the Director General of the National Automotive Design and Development Council (NADDC), said that the council had trained more than 4,000 auto technicians on how to convert petrol vehicles to CNG.
He said the council had started campaigns to sensitise Nigerians on the advantages of using CNG to power their vehicles.
“CNG can guarantee a cleaner environment, it is cheaper and affordable,” he said.
Mr Oluwatobi Ajayi, the Chairman and Managing Director of Nord Automobile Ltd., said the company was established to tackle the growing demand for vehicles in Africa and reduce import dependency.
He said that because of the Federal Government’s CNG initiative, the company had incorporated it into their vehicle production to meet up with the government policy.
Mr Armstrong Tankan, the Managing Director and Chief Executive Officer, Ministry of Finance Incorporated (MOFI), said that MOFI was set up in 1959 as the statutory vehicle to hold all the assets owned by the federal government.
“Today, we’ve been able to identify the assets the federal government owns and we are trying to track them.
‘We actually do have assets, not just locally but globally as well and we must establish visibility over what the federal government owns before we can start talking about managing them.
“So, we want to try to minimise the waste, minimise the overlaps and help to improve output,” he said.
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