Moove, an African mobility FinTech that offers vehicle financing to drivers of ride-hailing companies such as Uber and other gig platforms, raised $30 million from a debut sukuk issuance.
It was arranged by Franklin Templeton Investments as Moove aims to build the largest electric vehicle ride-hailing fleet in the Middle East and North Africa region.
Founded in 2020, Moove said it would use the funds to scale to 2,000 EVs in the UAE in the coming year, “creating sustainable economic opportunities, while accelerating the electrification of mobility and enhancing the ride-hailing passenger experience in the region”.
The company predicted that this fleet of EVs would contribute to a reduction of more than 5,000 metric tonnes of carbon dioxide emissions per year to help cities such as Dubai meet their net-zero targets.
“This financing is a milestone for Moove — our first sukuk issuance which showcases our growth and sustainability as a global company,” said Ladi Delano, co-founder and co-chief executive of Moove.
“Equally important is that this furthers our mission to build the biggest EV ride-hailing fleet in the region, to drive forward mobility electrification and enable cities to reach their net-zero targets.”
As part of its launch in the UAE, the start-up will release its EV charging app, Moove Charge. Initially launched in London in August, the app allows users to find charge points, show their availability in real time, filter by charge speed and start and stop charging of the vehicle.
The Emirates, second largest economy in the Arab region, is investing Dh 600 billion in clean and renewable energy projects over the next three decades as it aims to achieve net-zero emissions by 2050.
The UAE is among the world's top 10 countries as a market that is geared towards electric mobility, according to the consultancy Arthur D Little.
The UAE EV market, which is currently in its early stages, is projected to grow at an annual rate of 30 per cent between 2022 and 2028, according to the global electric mobility readiness index 2022 compiled by Arthur D Little.
Moove provides revenue-based vehicle financing and financial services to mobility entrepreneurs. By embedding its alternative credit scoring technology on to ride-hailing, e-logistics and instant delivery platforms, Moove said it uses proprietary performance and revenue analytics to underwrite loans to drivers that have previously been excluded from financial services.
Moove said the latest funding has brought the total capital raised so far to more than $280 million and its customers have completed over 11 million trips in Moove-financed vehicles.
The successful completion of the debut sukuk will allow Moove to attract Islamic investors who are interested in environmentally and socially responsible projects, the company said in a statement on Thursday.
The issuance of the Shariah-compliant notes or "sukuk" has been privately placed and structured as a sukuk al-istisna, a Shariah-compliant contract for the order to manufacture EVs, it added.
“Franklin Templeton is pleased to lead this innovative sukuk transaction that simultaneously complements our global sukuk and Sharia-compliant private market strategies, while supporting the development of mobility and FinTech ecosystems in the UAE initially, followed by more markets in the future,” said Mohieddine Kronfol, chief investment officer, Global Sukuk and Mena fixed income at Franklin Templeton.
“The transaction also further validates the opportunity we have been arguing exists in private credit across the region, combining attractive yields with security and credit control."
With a commitment to ensuring that at least 60 per cent of the vehicles Moove finances globally are EVs, the company is working with partners within the value chain across the Mena region to facilitate this transition in places where charging infrastructure remains limited.
The company launched in Europe in August when it started up its 100 per cent EV rent-to-buy model in London.
In July 2020, it teamed up with Uber to provide potential and existing Uber drivers in sub-Saharan Africa with long-term access to vehicles.
Moove also aims to be the largest EV partner on Uber’s platform in London with plans to bring up to 10,000 EVs by the end of 2025.
