Uber Technologies Inc. is reportedly in advanced discussions to inject $100 million into Moove, a rapidly growing African startup specializing in vehicle financing, according to sources familiar with the negotiations.
The potential investment, outlined in a recent Bloomberg report, signals Uber’s strategic move to strengthen its foothold in emerging markets by supporting Moove’s expansion efforts.
The injection of funds would elevate Moove’s enterprise value to an estimated $750 million, up from its current valuation of approximately $650 million, sources reveal. However, the exact sum of the investment is subject to ongoing negotiations and could fall between $75 million and $100 million.
Moove, which emerged as one of Nigeria’s top-funded startups in 2023, secured $76 million in funding amidst a slowdown in investment activities within the country’s startup ecosystem. Led by Nigerian-born entrepreneurs Ladi Delano and Jide Odunsi, Moove aims to revolutionize vehicle financing for ride-hailing and delivery drivers.
The company utilizes a sophisticated credit-scoring system to provide drivers with access to new vehicles, enabling them to kickstart their careers in the gig economy without the burden of hefty down payments.
Uber’s potential investment in Moove underscores the ride-hailing giant’s commitment to expanding its presence in Africa and other emerging markets. Since 2020, Uber has named Moove its official vehicle-financing partner in sub-Saharan Africa, allowing drivers to access vehicles with flexible payment options tied to their earnings.
Should the investment materialize, Moove plans to leverage the capital to bolster its operations in key markets, including India, where it recently entered in 2023. The company aims to introduce its innovative vehicle financing solutions in new cities such as Delhi, Pune, and Kolkata, catering to the growing demand for ride-hailing and logistics services.
The partnership between Uber and Moove holds the promise of facilitating greater access to vehicle financing for drivers worldwide, potentially transforming the way individuals enter and thrive in the gig economy.
As both companies finalize the details of the investment, stakeholders eagerly await further developments, anticipating the positive impact this strategic alliance will have on the mobility sector in emerging markets.
Credit: Nairametrics