SOUTH AFRICA – Moove, mobility fintech company, has obtained R300 million (US$20 million) in funding from Absa Corporate and Investment Banking (CIB), increasing its total funding since its start in 2020 to over US$200 million.

The most recent cash will be utilised to boost the company’s vehicle lending offerings for more clients in South Africa.

Launched in 2020 by Ladi Delano and Jide Odunsi, Moove is democratising car ownership throughout Africa by enabling mobility entrepreneurs with access to revenue-based finance in countries with limited credit access.

Using its alternative credit scoring methodology, Moove offers its customers auto finance for the purchase of brand-new vehicles based on a portion of their weekly income.

To date, Moove-financed vehicles have conducted more than 5 million journeys across its six sub-Saharan African regions, which have experienced tremendous demand and exponential expansion.

The mobility market in Africa is largely fragmented and informal, and the sector represents an opportunity on a continent with widespread unemployment.

According to Statistics South Africa1, more than a third of South Africans were unemployed in the first quarter of 2022, with the rate reaching a record 35.3% in the fourth quarter of 2021.

Moove will expand its revenue-based vehicle financing strategy in South Africa, allowing more mobility entrepreneurs to earn a living and own a vehicle.

“At Moove, we pride ourselves on being a mission-led company that empowers its customers to earn their way to asset ownership through a sustainable source of employment,” Moove’s CEO and Co-founder, Ladi Delano, said.

“In Absa, we’re delighted to have the funding which will enable us to serve more Africans looking for a path to economic prosperity.”

“For decades, they’ve transformed the livelihoods of millions through access to financial services, making them an ideal partner for Moove to tackle this same mission in South Africa. With this new funding we’re strongly positioned to unlock new opportunities for mobility entrepreneurs across South Africa helping them generate income and ultimately driving the economy forward.”

Despite being the fastest-growing continent in the world, Africa has the lowest car ownership rate per capita, with over one billion Africans having limited or no access to vehicle financing.

Moove has emerged as a leader in “mobility fintech” as part of a new wave of African-born fintechs. This white space tackles the continent’s severe auto financing issue and enables mobility enterprises to become more productive and prosperous.

“We are delighted to close this complex transaction with Moove, which has been an exciting journey over 18 months,” Morne Visagie, Head of Structured Asset Finance at Absa CIB said.

“This transaction enables the conventionally unbanked to gain access to finance, enjoy the benefits of their efforts and build a brighter future in a sustainable way.”

Moove is Uber’s largest fleet vehicle supply partner in EMEA and has agreements with multiple other mobility markets, such as Glovo, Swvl, Sendy, and Kobo360, encompassing ride-hailing, haulage & logistics, last-mile deliveries, and mass transit.

Moove has rapidly expanded to 13 cities across three continents since its start in 2020.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s businesseconomy, and more. SUBSCRIBE HERE