A new finance company that has pioneered a way for ride hailing drivers to pay for a new car directly from their Uber earnings, has raised $105 million to support its international expansion, particularly in developing markets.
Nigeria-based mobility fintech Moove has plans to extend its reach beyond Africa to Asia, Europe and the Middle East/North Africa.
The company provides revenue-based finance to Uber drivers, which it calls ‘mobility entrepreneurs’, to pay for a new car in markets with low access to credit. Moove customers use a percentage of their weekly earnings to make payments towards brand new vehicles.
Overcoming credit shortages
Poor credit penetration across Africa has restricted the ability of over 1 billion Africans to buy new vehicles, according to Moove, which cites statistics that fewer than 5% of all vehicles in Africa are purchased with finance compared to 92% in Europe.
Last August, Moove raised $23 million in a Series A round of funding, and said Moove-financed vehicles have since completed over 3 million rides.
