Uber negotiates to support Nigerian startup Moove with potential $100 million investment

Uber Technologies Inc., the US ride-hailing giant, is currently in negotiations to invest in African auto-financing startup Moove, according to sources privy to the matter. The proposed investment could be part of a funding round worth up to $100 million. However, the final amount raised could change, landing potentially anywhere between approximately $75 million and $100 million.

Joining other investors in this capital raise, Uber’s backing would increase Moove’s overall value to around $750 million, a significant jump from its current $650 million value.

This news comes at a time when Africa, known for its rapid population growth, is increasing its uptake of technology in sectors spanning banking, ride-hailing, and entertainment. As traditional infrastructure and institutions are often lacking, tech platforms like Moove are filling the gap.

Moove, along with other fast-growing fintech services like Flutterwave and Interswitch, were launched in Nigeria, Africa’s most populous country. Some of these startups have reached unicorn status, a term used to denote startups valued at $1 billion or more.

Moove was established in Lagos in 2020 by British-born Nigerian entrepreneurs Ladi Delano and Jide Odunsi. The startup was designed to aid potential ride-hailing drivers who lacked access to car financing. Now based in Amsterdam, the company has extended its operations to several countries, including the UK, UAE, India, and regions across Africa.

Moove’s business model centers around financing the purchase of new vehicles for ride-hailing, delivery, and logistics drivers. The startup achieves this through a credit-scoring system that uses a portion of drivers’ weekly earnings. This system is particularly effective as Moove already maintains a strong working relationship with Uber.

The auto-financing startup rounded off a $76 million debt and equity funding round in August of last year, which included investments from prominent financial firms BlackRock Inc. and Mubadala Investment Co. However, both Uber’s and Moove’s representatives declined to comment on the current negotiations.