Moove Africa has received $10 million financing facility from NBK Capital Partners Mezzanine Fund II (the Fund). This brings the total funding raised by Moove since it was founded in 2019 to $78.2 million.
This asset-backed venture debt marks the sixth investment from the Fund and NBK Capital Partners first investment in Africa. Meanwhile, this is Moove's second debt financing in less than a year. The African mobility fintech firm had secured a $20 million debt from the International Finance Corporation (IFC) and its partners in August 2021. Hence, Moove's current total funding raised is made up of $28.2 million equity and $50 million debt financing.
Venture debt is not bad. Founders who want to avoid dilution — reduction in their equity — are advised to raise money through this alternative financing method. Because raising money through equity financing can cost founders up to 20% equity at each funding round. And by Series C or D round, the founders could own less than 10% of their company.
Also, Moove is not the only startup receiving financing facility. Last year December, TradeDepot raised $110 million through equity (38%) and debt financing (62%).
Similar to the IFC's debt financing, Moove said this $10 million investment will support its expansion in West Africa. The company currently operates across six cities in Ghana, Kenya, Nigeria, and South Africa.
"This investment will fuel our continued growth trajectory as we expand our regional operations to empower more mobility entrepreneurs. We are grateful to be working with a firm that supports our vision to build the first mobility fintech for Africa markets, tackling the problem of lack of access to credit for millions", Moove co-founder and co-CEO Ladi Delano said.
Some months after its launch, Moove was named as Uber's exclusive vehicle financing and vehicle supply partner in Sub-Saharan Africa. The partnership allowed potential and current Uber drivers have access to vehicle financing. However, some Uber drivers have accused the company of trying to make them pay exorbitant sums for brand new vehicles.> **Also Read:** [Moove partners with Lori Systems to bridge the financing gap for Africa’s trucking and logistics industry](/moove-partners-lori-systems/)
"Using our alternative credit-scoring technology and revenue-based model, Moove is empowering more women to access financing and become mobility entrepreneurs", Moove co-founder and co-CEO Jide Odunsi said. "We’re committed to ensuring that at least 50% of our customers are female, providing them with the tools, services, and flexibility they need to be productive and successful, when previously they have been excluded from more formal means of employment".
More than two million trips have been completed in Moove-financed vehicles between 2020 and through year-end December 2021, Moove executives stated.
"We are very excited to partner with Moove on its journey to transform access to credit for millions of people across the African continent", NBK Capital Partners CEO Yaser Moustafa said. "The company is driven by strong founders who possess a unique, long-term vision for success, one built on the empowerment of individuals from every socioeconomic class across the region but also a genuine commitment to social and environmental sustainability".
The two co-founders and co-CEOS of Moove are British-born Nigerians, educated at the London School of Economics, Oxford University and MIT.
"We are proud to support Moove’s management at such a vital time in the company’s expansion", NBK Capital Partners MD and Head of Private Credit Sikander Ahmed said. "We believe our flexible financing solutions are the reason why an increasing number of rapidly growing companies have come to rely on us for proven solutions to the many complex financial situations in which they find themselves".
The NBK Capital Partners Mezzanine Fund II was closed in 2017 with $160 million capital commitments. NBK Capital Partners was founded in 2005, and it is Alternative Investments unit of NBK Capital, a subsidiary of National Bank of Kuwait. It targets companies in the Middle East and North Africa region, and has advised in successfully closing 37 investments across various sectors, with 18 profitable exits.
Featured image: Moove co-founders; Jide Odunsi and Ladi Delano