Nigerian mobility fintech Moove raises US$30 million for UAE expansion

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  • Moove has raised US$30 million to increase its fleet of electric vehicles in the MENA region. The money came from a debut Sukuk offering
  • Moove will use the funding to add up to 2,000 EVs in United Arab Emirates over the next year
  • Moove predicts that this fleet of EVs will reduce carbon dioxide emissions by nearly 5,000 metric tonnes annually

Moove, a mobility fintech company in Nigeria, has raised US$30 million to increase its fleet of electric vehicles in the MENA region. The money came from a debut sukuk offering that Franklin Templeton Investments (ME) Ltd coordinated.

The successful closing of the company’s first sukuk will give Moove access to the vast pool of Islamic investors who are especially keen on making socially and environmentally responsible investments. It will also undoubtedly open up new financing options for Moove’s ambitious expansion plans.

As a sukuk al- istisna, a Shari’ah-compliant contract for purchasing EV manufacturing, issuing the Shari’ah-compliant notes, or “sukuk,” has been privately deposited and arranged. Building on its achievements, this investment marks a significant turning point for Moove. It is evidence of the company robustness of its business strategy and future growth prospects.

“This financing is a significant milestone for Moove since it is our first Sukuk issuance, demonstrating our sustainability and expansion as a multinational firm. The fact that this advances our goal of developing the largest EV ride-hailing fleet in the area, advancing mobility electrification, and making it possible for cities to achieve their net-zero goals is also significant,” Co-founder and co-CEO of Moove, Ladi Delano, said.

In order to accelerate the electrification of mobility and improve the ride-hailing passenger experience in the region, Moove will use the funding to add up to 2,000 EVs in United Arab Emirates over the next year. To help cities like Dubai achieve their lofty Net Zero goals, Moove predicts that this fleet of EVs will reduce carbon dioxide emissions by nearly 5,000 metric tonnes annually.

“Franklin Templeton is happy to lead this innovative Sukuk transaction that enhances our global Sukuk and Sharia-aligned private market strategies whilst also supporting the growth of mobility and fintech ecosystems in the UAE at first, followed by more markets in the future,” said Mohieddine Kronfol, CIO, Global Sukuk and MENA Fixed Income.

“The acquisition also reinforces the opportunity in private lending that we have been saying exists across the area, combining high yields with security and credit management.

We wish the management team at Moove success and look forward to seeing their automobiles on the road as well as the potential environmental and social impact their business can have on our area.”

Electric cars recharging batteries [photo/Weforum]

EV infrastructure investment to promote sustainability

Moove will release its EV charging app, Moove Charge, as part of its launch in the UAE. The first end-to-end charging experience and full EV charging network app designed mainly for ride-hailing drivers, Moove Charge first debuted in London in August 2022.

Users can search for charging stations, see charging stations that are compatible with their car, see charging stations’ availability in real-time, filter by charging speed, start and stop charging, and utilise the wallet feature. As part of its goal to make sure that at least 60% of the vehicles it finances worldwide are electric vehicles, Moove is collaborating with value chain partners in the MENA region to speed up this transition in areas with sparse charging infrastructure.

A year of considerable progress in advancing mobility electrification

Moove entered the UAE following a year of strong company growth and expansion. In August 2022, Moove made its debut in Europe by introducing a 100% EV rent-to-buy strategy in London. The company also started in India to contribute to sustainable employment prospects in the emerging economy. It would roll out 5,000 CNG and EV vehicles across Mumbai, Hyderabad, and Bangalore in its first year.

Moove has allowed sustainable employment creation and a route to asset ownership over the last two years. Its clients have completed over 11 million journeys in Moove-financed automobiles. This is due to Moove’s alternative credit scoring methodology, which allows gig worker customers who were previously barred from financial institutions to obtain auto finance.

Read: eWaka seeks funding for Africa’s e-mobility assembly facility

Maingi Gichuku is passionate about helping African businesses grow by offering technology solutions. With a BSC in Zoology and biochemistry, Gichuku yearns for an Africa that can find solutions to its challenges. My drive is to see an economically dynamic Africa and embrace its populations by creating opportunities cutting across the social and economic strata.

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