Nigerian Mobility startup, Moove, has announced $20 million financing deal from British International Investment (“BII”), the UK government’s Development Finance Institution (DFI), formerly known as CDC Group.
According to Moove, the 4-year structured credit investment will play a key role in expanding its operations in Nigeria and significantly strengthen its product offerings for customers throughout the country. BII said the funding will enable Moove to purchase and import brand new “fuel-efficient cars” into Lagos, which will be leased to drivers who can earn their way to asset-ownership over three to four years.
In March 2022, Moove raised $105 million in an oversubscribed Series A2 round consisting of equity and debt in a round led by existing investors, Speedinvest, Left Lane Capital, and the latest.ventures.
Launched in 2020 by Ladi Delano and Jide Odunsi, Moove is democratizing vehicle ownership across Africa by providing mobility entrepreneurs access to revenue-based financing in markets with low access to credit.
Moove has also become the first business to qualify for BII’s BOLD (Black Ownership and Leadership Development) and 2X qualifications, which are both geared toward establishing a more inclusive approach to investing.
On how BII’s new five-year strategy is driving its investment in Moove, O’Donohoe comments: “Investing in the prosperity of Nigeria’s growing population requires innovative new partnerships that can leverage the country’s abundant capabilities and expertise. In Moove, BII has a partner that aligns with our commitment to back dynamic tech-enabled businesses that can help accelerate impact in Nigeria by strengthening the country’s informal transport industry”
“I am delighted that not only will BII’s investment help to create jobs and provide entrepreneurial self-starters with the means to own their vehicles, but Moove’s clear focus on gender diversity will foster inclusive economic opportunities for women, both within the company’s workforce and among its drivers.”
Ladi Delano, co-founder, and co-CEO at Moove, said, “We’re incredibly proud to welcome onboard a world-class partner such as BII, whose strategic support will play a key role in our mission to build the world’s largest integrated vehicle financing platform for mobility entrepreneurs.
With our new funding, we’re now in an even stronger position to use our technology and productivity data in creating a more inclusive financing ecosystem, whilst also tackling the unemployment problem affecting over a third of Nigerians by generating the opportunity for more seamless and sustainable employment.”
In an interview with TechCrunch, Moove co-CEO Ladi Delano said at least 60% of the vehicles the company finances will be electric or hybrid in the coming years. This grand plan of a company that has raised over $200 million in equity and debt fits well with BII’s climate finance objectives.