U.S. Growth for Moove as they Strive for 2025 Financial Aim
Moove, a Nigerian vehicle financing startup that provides fleets of vehicles for ride-hailing, logistics, and delivery services, has announced its expansion into the United States. The company, founded by Ladi Delano and Jide Odunsi four years ago, unveiled its expansion strategy in March 2024 with a $100 million investment round.
The funding round was led by Uber, Future Africa, Dubai-based The Latest Ventures, AfricInvest, Palm Drive Capital, and Triatlon Advisors. Besides Uber, the financing institutions involved in the round included Cathay Innovation, Endeavor Catalyst, and Global Founders Capital.
Moove's expansion into the U.S. market will focus primarily on financing electric vehicles in new markets. The company aims to become profitable by 2025 and plans to operate in six more markets by that year.
The roles for the U.S. expansion include a managing director and a head of debt capital markets, with job openings available in Los Angeles and California. The company's zero-emission mandate could see a smooth entry into the U.S., where electric vehicles are becoming increasingly popular.
The business model of Moove has encountered challenges in Nigeria due to rising inflation and fuel costs. However, the company believes that these issues are unlikely to affect its operations in the U.S., where the economy is relatively stable. The credit scoring systems in the U.S. are also more reliable compared to those in Nigeria.
Moove's expansion may involve driving fundraising efforts, engaging with key financial stakeholders, and structuring complex financial transactions. It remains unclear if Moove will adapt its business model for new markets or continue offering revenue-based financing, which it currently provides to ride-hailing, logistics, mass transit, and instant delivery platforms.
Drivers pay for the vehicles in installments, with a portion of their weekly income deducted by the company. The company's partnership with Uber, as suggested by Uber's involvement in Moove's funding round, could extend across borders.
Moove currently operates in six markets and plans to expand to six more by 2025. The company's expansion into the U.S. marks an exciting step for the startup, as it looks to capitalise on the growing demand for electric vehicles and ride-hailing services in the country.
