Africa is home to more than a billion people, where a majority have limited or no access to vehicle financing. Across Africa, car owners often recycle used cars between themselves because of the difficulty of accessing new ones. Moove, an African mobility company with a fintech play, wants to change that.
The Nigerian mobility fintech has signed an exclusive partnership with Lori Systems, the leading e-logistics company in Africa.
The partnership marks Moove’s first foray into the logistics industry, building on rapid growth over the last 15 months in car financing, as it leverages its revenue-based financing model to bridge the financing gap across one of the continent’s most highly fragmented sectors.
Moove and Lori Systems’ partnership will focus on delivering access to affordable vehicle financing within Africa’s trucking and logistics industry where penetration for truck financing is lower than 1%.
By combining 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.
The launch in Kenya will be followed by 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.
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.
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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.
Moove: Democratizing vehicle ownership in Africa
Commenting on the exclusive partnership, Ladi Delano, Co-Founder and CEO of Moove said: “We knew from the get-go that our mission to democratise 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.”
Launched in 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’s efforts to leverage data-driven and tech-enabled solutions, according to Delano, have recorded significant progress in driving further efficiency in the African logistics industry. “This has been impressive and very much aligns with our mission.”
Lori Systems has built a network of thousands of vetted transporters to move cargo across 12+ countries.
Driving down cost
According to Uche Ogboi, CEO of Lori Systems, 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 said.
The partnership with Moove allows Lori to design innovative and flexible financing options, using data captured over the years, to allow transporters to fund new trucks and increasingly grow their fleet and businesses.
The logistics industry in Africa has for so long been underserved by financial providers.
“By partnering with Moove to unlock access to financing, we can provide an even more efficient service, match the growing customer demand in the market, whilst lowering the costs for goods. It’s as simple as that.”
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 kilometers traveled 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 after raking in $23 million in Series A this year.
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.
