Moove, the Nigerian mobility fintech startup backed by Uber, has acquired Kovi, a car rental company in Brazil, which is the largest ride-hailing market in Latin America. This acquisition marks a significant step in Moove’s global expansion, as the startup currently operates in 19 cities across five continents.
The deal is an all-stock transaction, allowing Kovi’s investors to become shareholders in Moove. Kovi has successfully raised over $145 million from notable investors such as Accel, Spectra Investments, Valor Capital, Prosus Ventures, and Quona Capital. With this acquisition, Kovi’s investors will now hold shares in Moove, which has secured around $500 million in debt and equity from prominent backers including Uber, Mubadala, BlackRock, Franklin Templeton, Janus Henderson, and the International Finance Corporation (IFC). A Series B round led by Uber, which raised $100 million, valued Moove at $750 million.
This acquisition is also crucial for Moove’s AI mobility strategy, which will enhance various aspects of the business, from optimizing ride-hailing services to improving fleet management.
Kovi’s unique technology and algorithms are expected to “complement and strengthen our existing AI mobility strategy and ensure that we can start to deliver an improved service and product to our customers around the world,” stated Moove’s co-founder and co-CEO Ladi Delano.
As a result of this deal, Moove’s annual revenue is projected to reach $275 million. Additionally, it marks a continued expansion for Moove beyond Africa. The company already has operations in Colombia and Mexico, and acquiring Kovi will further solidify its foothold in Latin America. Moove’s fleet has expanded to 36,000 cars across 19 cities on five continents, with ambitions to create the world’s largest ride-share fleet outside of Africa.
Also read: How to Set Up Parental Controls on any Device
“Their purpose-driven approach aligns perfectly with our culture. Together, I believe we will establish a truly global, category-defining business and leverage a scale and expertise that has never been seen in our market,” remarked Kovi CEO Adhemar Milani Neto.
Nigerian mobility financing company Moove has announced its acquisition of Kovi, a Brazilian urban mobility provider. This all-share transaction has boosted the mobility fintech’s annual revenue to $275 million, marking a 139 percent increase from the $115 million reported last March.
The merger brings together two companies that offer financing solutions for ride-share drivers. While the value of the acquisition remains undisclosed, it is still awaiting approval from the Brazilian antitrust authority.
Founded in 2018 and backed by Y Combinator, Kovi was established to make vehicle ownership more accessible in Brazil. Following the merger, Kovi will continue to operate under its own brand, and its executive and management teams will remain intact.
With Moove maintaining the Kovi brand in its current markets of Brazil and Mexico, there are plans for further expansion across Latin America.
The African mobility fintech recently launched operations in three cities in Colombia and Mexico. This acquisition strengthens Moove’s position in Latin America, providing the company with a significant foothold in Brazil, the largest ride-hail market in the region.
Moove co-founder and co-CEO Ladi Delano expressed his excitement about collaborating with Kovi. He noted that the new team consists of like-minded individuals focused on addressing similar challenges faced in Nigeria.
“Kovi is one of the top two players in Brazil. So, we have not only entered or strengthened our presence in the Latin American market but also positioned ourselves among the top two in the largest single market in Latin America through this acquisition,” he stated.
See this: Nigerian Unicorn Moniepoint Bags $10Million Visa Investment
Delano emphasized that Moove’s acquisition of São Paulo-based Kovi represents a major step toward building the world’s largest ride-share fleet. With Latin America emerging as a key market, Moove has expanded from 76 cars in Lagos, Nigeria, to 36,000 cars operating in 19 cities across six continents.
Kovi’s acquisition follows a partnership announcement between the African fintech and Waymo, aimed at providing driverless vehicle fleet operations in Phoenix and Miami, just two months prior.
Founded in 2020 and backed by Uber, Moove specializes in vehicle financing for ride-hailing and delivery app drivers across six continents, with plans to expand into Latin America.
Kovi’s response to Moove’s merger
Reports indicate that Kovi’s financial situation was uncertain at the time of its acquisition. Its most recent funding round was a $104 million Series B in 2021, with contributions from investors such as Valor Capital, Prosus Ventures, and Quona Capital. That year, Kovi reported an annual revenue of $45 million, reflecting a 15 percent month-over-month growth.
The company mainly targets Brazil and Mexico and is strategically positioned for further expansion throughout Latin America.
Kovi’s CEO, Adhemar Milani Neto, expressed strong confidence in the merger, particularly in the founders of the African mobility company.
“I met the founders [Moove’s Delano and Jide Odunsi] many years ago when they were scaling their business in Africa, and I was immediately struck by their purpose-driven approach, which aligns perfectly with our culture. Together, I believe we will create a truly global, category-defining business and leverage unprecedented scale and expertise in our market,” he stated.
Moove has established a third pillar in the global mobility marketplace by providing vehicle supply to ride-hailing platforms. This includes its flagship Drive-to-Own product and a developing autonomous vehicle (AV) business line that incorporates AI-driven mobility.
Given the importance of AI in the AV sector, Delano mentioned that the company’s AI mobility strategy will encompass the entire business, enhancing everything from traditional ride-hailing services to fleet management.
He mentioned that Kovi’s unique technology and algorithms will enhance our current AI mobility strategy, allowing us to provide a better service and product to our customers globally.
Regarding Moove’s recent expansion, it secured a $100 million Series B funding round led by Uber last year, achieving a valuation of $750 million. During this time, Uber also partnered with Moove in India, providing electric vehicles to Uber drivers in the region.
Since its inception in 2020, the mobility fintech has raised over $500 million in debt and equity from investors such as Mubadala, BlackRock, Franklin Templeton, Janus Henderson, and the IFC (World Bank).
According to a report by tech startup analytics firm CB Insights in its Q1 2024 State of Fintech Report, Moove was recognized as one of the top 10 financial technology companies that secured the most funding during that period.
