Moove, a Nigerian-born mobility startup revolutionising vehicle financing for ride-hailing services, is poised to become Africa’s next tech unicorn. The five-year-old company is in advanced talks to raise about $300 million at over $1 billion valuation in a new funding round, according to a report by The Information. 

Founded in 2020 by Ladi Delano and Jide Odunsi, Moove has rapidly scaled its operations by addressing a critical gap in Africa’s ride-hailing market: access to vehicle financing for drivers. The startup provides flexible financing options, enabling drivers to own vehicles through affordable repayment plans tied to their ride-hailing earnings.

Operating in nine markets across Africa, including Nigeria, South Africa, and Kenya, the mobility company has expanded its footprint to the United Kingdom, India, and the United Arab Emirates. The company’s innovative model has attracted partnerships with global giants like Uber, for which Moove serves as the exclusive vehicle financing and supply partner in sub-Saharan Africa.

Moove’s latest fundraising effort follows a year of significant growth, with the company reportedly generating $30 million in monthly revenue. This revenue pace underscores its operational success and its appeal to investors eyeing the untapped potential of Africa’s mobility sector. The funding round, which is expected to close in the coming months, could propel Moove to unicorn status. 

Its strategic partnership with Waymo, Alphabet’s autonomous vehicle subsidiary, has further bolstered its profile. The startup’s employees currently clean and charge Waymo’s electric robotaxi fleet in the United States, a role that positions Moove as a key player in the autonomous mobility ecosystem.

Sources indicate that Moove aims to expand beyond fleet management into broader autonomous vehicle services, aligning with the global shift toward self-driving technology. This partnership, combined with Moove’s core financing business, has fuelled investor interest, with the $300 million round expected to include participation from prominent venture capital firms, though specific investors remain undisclosed.

The African tech landscape has seen a surge in investor enthusiasm, with ten startups, including Flutterwave and Andela, previously achieving unicorn status. Its potential entry into this elite group highlights the continent’s growing appeal as a hub for innovation. This fundraising follows closely on the heels of PalmPay, another Nigerian fintech eyeing unicorn status, signalling a vibrant period for African startups.

Industry analysts note that Moove’s revenue model, which leverages ride-hailing data to optimise financing, offers a scalable blueprint for growth in emerging markets.

However, the mobility startup faces challenges as it scales. The ride-hailing sector in Africa is highly competitive, with players like Bolt and inDrive vying for the largest market share. Regulatory hurdles, fluctuating fuel prices, and economic volatility in key markets like Nigeria could also pose risks.

Despite these challenges, Moove’s data-driven approach and strategic partnerships provide a strong foundation for sustained growth. The company’s expansion into autonomous vehicle services could further diversify its revenue streams, positioning it to capitalise on the global transition to self-driving technology.

Moove’s ability to secure significant funding reflects investor confidence in its leadership and vision. 

The company’s impact extends beyond economics. By enabling thousands of drivers to own vehicles, Moove has created livelihoods and fostered financial inclusion in underserved communities. Its expansion into electric vehicle financing aligns with global sustainability goals, addressing environmental concerns in the ride-hailing industry. As Moove prepares to close its $300 million round, the startup is poised to redefine mobility in Africa and beyond.

The broader implications of Moove’s potential unicorn status are significant. A successful funding round could inspire further investment in African startups, particularly in mobility and fintech. It also underscores the importance of partnerships with global players like Uber and Waymo, which provide African companies with access to cutting-edge technology and markets.