Nigerian mobility fintech company Moove, which is Uber’s largest vehicle supply partner in EMEA, has raised $30 million from its first Sukuk issuance to help it grow in the United Arab Emirates.
By giving mobility entrepreneurs revenue-based vehicle financing, Moove, a company started in 2019 by British-born Nigerians Ladi Delano and Jide Odunsi, is making it possible for more people to own cars in Africa.
The mobility fintech startup has now raised more than $230 million, with Franklin Templeton Investments (ME) Ltd. leading the latest investment round.
“Moove’s services in the UAE and the Sukuk are important,” said Franklin Templeton’s CIO of Global Sukuk and MENA Fixed Income, Mohieddine Kronfol. “We are thrilled to lead this unique Sukuk transaction that complements our worldwide sukuk and Sharia-compliant private market objectives while boosting the UAE’s mobility and fintech sectors.”
Read also: Moove secures £15 million in funding to expand operations in the UK
Moove’s investment strategy
With the money, the company plans to build the largest fleet of electric cars for ride-hailing in the Middle East and North Africa, starting in the United Arab Emirates (UAE). In order to achieve its growth objectives, Moove hopes to tap the funds of Islamic investors via its Sukuk offering.
The sukuk al-istisna, a Shari’ah-compliant contract for EV manufacturing, was privately placed.
Building on its past successes, this investment is a turning point for Moove. It shows that its business model is strong and that it has room to grow.
Ladi Delano, co-founder and co-CEO of Moove, said, “This financing is a big deal for Moove. It’s our first Sukuk issue, which shows how we’ve grown and can stay in business as a global company.”
This helps us build the largest EV ride-hailing fleet in the region, speed up the switch to electric mobility, and help cities reach their net-zero goals.
Moove’s expansion plan
In 2018, the finance company Moove expanded into 13 additional markets across nine nations. It’s also groundbreaking because it was one of the first fintech companies focused on mobility to use car loans to help people get stable jobs and make the gig economy more fair.
In August, a rent-to-own model with 100% EV vehicles debuted in London. Owners of businesses were able to contribute to building a sustainable workforce in India’s expanding economy by setting up offices there. In the first year, Mumbai, Hyderabad, and Bangalore would each get 5,000 CNG and EV units.
Since its inception, Moove-paid vehicles have driven more than 11 million kilometers. As a result, business revenue and the consumer base rose. Numerous credit scoring algorithms have also made automotive financing more accessible to more individuals.
To promote long-term economic growth, Moove plans to utilize its new financing to increase its fleet of electric vehicles (EVs) in the UAE in 2019. Additionally, it plans to electrify local transportation and increase local ride-hailing.
According to the company, more electric vehicle use would reduce carbon dioxide emissions and help cities like Dubai achieve their Net Zero goals.
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Moove’s Further plans
Moove wants to expand to the UAE and beyond. The mobility fintech company will launch Moove Charge, an EV charging app. London started this service.
The first full EV charging network app for ride-hailing drivers is Moove Charge.
This software shows appropriate charging stations in real time, lets users choose by charging speed, starts and stops charging, and gives them options for how to pay.
In the Middle East and North Africa (MENA) region, the company wants to work with partners all along the value chain to make this transition easier in places where charging infrastructure isn’t as developed.