Uber Technologies Inc., the leading ride-hailing company in the United States, is reportedly in talks to invest in Moove, an African auto-financing startup. Insiders familiar with the discussions have hinted that this investment could be part of a larger funding initiative, potentially reaching up to $100 million. While the exact amount is yet to be finalized, estimates suggest it could fall between $75 million and $100 million.
Uber’s participation in this funding round is expected to significantly boost Moove’s valuation, propelling it from its current $650 million to an estimated $750 million.
This development is particularly noteworthy given Africa’s burgeoning technology adoption across various sectors, including banking, ride-hailing, and entertainment, amid rapid population growth. In regions where traditional infrastructure and financial institutions are sparse, innovative platforms like Moove are stepping in to bridge the gap.
Moove, together with other rapidly expanding fintech companies such as Flutterwave and Interswitch, originated in Nigeria, the most populous nation in Africa. These startups, including Moove, have been making significant strides, with some achieving the coveted unicorn status, signifying a valuation of $1 billion or more.
Founded in Lagos in 2020 by Nigerian entrepreneurs Ladi Delano and Jide Odunsi, Moove was conceived to provide support for aspiring ride-hailing drivers who were unable to secure financing for vehicles. Having relocated its headquarters to Amsterdam, Moove has since broadened its footprint, establishing operations in several countries including the UK, UAE, India, and various African locales.
Central to Moove’s operational model is its innovative approach to financing vehicle purchases for drivers in the ride-hailing, delivery, and logistics sectors. The company utilizes a credit-scoring mechanism that apportions a segment of the drivers’ weekly income, facilitating a unique and sustainable financing solution. Moove’s model has proven especially potent due to its robust collaboration with Uber.
In its latest financial milestone, Moove concluded a debt and equity funding round in August of the previous year, amassing $76 million. This round saw participation from leading investment entities such as BlackRock Inc. and Mubadala Investment Co. Despite the buzz around the ongoing discussions, spokespeople from both Uber and Moove have refrained from commenting on the matter.
