Moove, an African mobility fintech, today entered a partnership with Lori Systems, an e-logistics company in Africa to enable access to affordable vehicle financing within Africa’s trucking and logistics industry where penetration for truck financing is lower than one percent.
Building on its rapid growth in car financing for the last 15 months, Moove will leverages its revenue-based financing model to bridge the financing gap across one of the continent’s most highly fragmented sectors.
With Moove’s unique revenue-based financing model and credit-scoring technology with Lori Systems’ data-driven logistics marketplace, both companies aim to increase the capacity of transporters to match demand across East and West Africa.
Loans will be allocated to a pool of highly rated and vetted transporters on Lori Systems’ platform, allowing them to expand their fleet, as well as through a drive-to-own program for all truck drivers. With up to 100% of the purchase price underwritten by Moove, customers will be able to pay back the loans over 48 or 60 months using a percentage of their weekly revenue.
A rollout in Nigeria using the same revenue-based financing and credit decision model that Moove has developed as Uber’s exclusive vehicle financing and vehicle supply partner in sub-Saharan Africa will follow this launch in Kenya.
Ladi Delano, Co-Founder and CEO of Moove said, "we knew from the get-go that our mission to democratize vehicle ownership would take us beyond cars. We’re thrilled to be partnering with Lori Systems to empower truck drivers in Africa, and are excited about the positive impact our revenue-based financing solutions will have on their lives."
He said that "Lori's efforts to leverage data-driven and tech-enabled solutions have recorded significant progress in driving further efficiency in the African logistics industry; this has been impressive and very much aligns with our mission."
Since 2017, Lori Systems has been at the forefront of digitizing logistics on the continent and has successfully driven efficiency across the fragmented East and West African markets by digitizing discovery and providing end-to-end visibility for customers and transporters, achieving savings of up to 20%.
Lori Systems has built a network of thousands of vetted transporters to move cargo across 12+ countries. "Lori's mission is to drive down the cost of goods in frontier markets. We've grown a marketplace that brings transparency and data to the forefront of the continent's critical haulage industry.", Uche Ogboi, CEO of Lori Systems.
Ogboi further stated that, "the partnership with Moove enables us to design innovative and flexible financing options, using data we have captured over the years, to allow transporters fund new trucks and increasingly grow their fleet and businesses"
By partnering with Moove, Ogboi belives that to financing access will be unlock and more efficient service will be provided to match the growing customer demand in the market, whilst lowering the costs for goods.
Co-founded in 2019 by serial entrepreneurs, Ladi Delano and Jide Odunsi, Moove recently reached the milestone of 1 million Uber trips in Moove-financed vehicles with over 16 million kilometres travelled in Lagos, Accra, Johannesburg and Cape Town.
Backed by leading VCs including Speedinvest and Left Lane Capital as well as global institutions such as the International Finance Corporation, Moove has raised a total of $68.2 million in funding to date.
Through this partnership with Lori, Moove is focused on driving efficiency within the industry and empowering truck drivers across the continent through customer-centric products designed to transform African transportation and logistics.
Recall that, Moove secured a $23 million Series A fund with the commitment to give 100 per cent of mobility entrepreneurs access to affordable credit and ensuring that 50 per cent of its customers are women. This partnership with a female led company reflects that Moove is still on the track to fulfilling its promise.
Featured Image: Uche Ogboi, CEO of Lori Systems and Ladi Delano, Co-Founder and CEO of Moove