Mobility fintech start-up, Moove, has raised $23 million to help Uber Technologies Inc. drivers buy cars in sub-Saharan Africa.
Its existing investor, Emso Asset Management, also participated in the round of funding, which brings Moove’s total capital to 68.2 million dollars.
Ladi Delano, co-founder of the company told Bloomberg that it uses financial data from ride-hailing platforms to determine whether to loan money to drivers. As of July, last year, Uber and Moove formed a partnership.
Accordingly, the British-born Nigerian said one of the commitments they have is to finance 60% of cars that are either electric or hybrid. “In Nigeria, Ghana and South Africa, we will launch our first EV fleet later this year,” Delano said.
Depending on the model and brand, vehicles cost between $9,000 and $13,000. In Ghana, the company works with Volkswagen AG instead of Toyota Motor Corp.
With 24-to-48-month repayments, drivers must deposit 5% of the cost of the vehicle. Interest rates range from 8% to 13%, and drivers may pay as little as 5% of the value of the vehicle. The 60-month product will be available in the fourth quarter, according to Delano.
As a result, the mobility industry is moving from cars to buses, and trucking as well. “The number of vehicles we will have on the road by the end of 2021 is estimated at around 9,000 to 10,000,” he said.
In Lagos, Johannesburg, and Accra, Uber co-locates with the start-up. In the next two weeks, it plans to launch in Cape Town, and in Durban by September, after which it will enter Uganda and Kenya.
Delano said the company is not going to work with Uber rivals like Bolt, but plans to announce partnerships with other ride-hailing companies for trucks and buses next quarter.
