Nigeria-headquartered mobility fintech startup Moove has raised a Series A round of US$23 million, according to a statement.

Speedinvest and Left Lane Capital led the round. Meanwhile, a number of participating investors also pitched in, including UAE-based KAAF Investments and Spartech Ventures.

From the US, this included DCM, Clocktower Technology Ventures, Tekton, FJ Labs, Palm Drive Capital, and Class 5 Global.

LocalGlobe and existing backer Emso Asset Management from London also participated in the round, as did Singapore-based Roka Works.

Africa-focused Verod Capital Management and Kepple Africa Ventures also contributed to the funding round, along with Co-founder of Lendable Victoria van Lennep and thelatest.ventures.

The funding brings Moove’s total capital raise to US$68.2 million, of which US$40 million is debt.

The investment was a first Africa startup bet for many of the US-based investors, the statement said. The company will use the funding to expand to new markets, and launch new products and services.

Vehicle ownership amongst gig-based drivers in Africa

Moove integrates its alternative credit-scoring technology with ride-hailing and e-logistics platforms to help underwrite loans through proprietary performance and revenue analytics of vehicle drivers.

Moove provides new vehicles with up to 95% financing within five days of sign up. Drivers pay back loans across 24, 36, or 48 months, using a percentage of weekly revenues.

Co-founded by serial entrepreneur Ladi Delano and investment banker and consultant Jide Odunsi in 2019, the company is the exclusive vehicle financing and supply partner for Uber in sub-Saharan Africa. Initially bootstrapped, Flutterwave co-founder Iyinoluwa Aboyeji’s Future Africa fund provided seed funding to the company.

“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,”

Delano said.

“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.”

Owing to income disparities in Africa, drivers often rent the vehicles they drive, unable to own them. With drivers and platforms often clashing over basic worker rights such as minimum wage, and costs and commissions, drivers can get stuck in a vicious payouts cycle, with severely reduced earnings after payments to platforms and vehicle owners.

Africa’s ride hailing landscape is largely dominated by Uber and Bolt.

Featured image credit: Moove (L-R Moove Co-founders Jide Odunsi and Ladi Delano)