Nigerian mobility fintech startup Moove has signed an exclusive partnership with Kenyan e-logistics company Lori Systems to deliver access to affordable vehicle financing within Africa’s trucking and logistics industry.
Founded by Ladi Delano and Jide Odunsi, Moove is democratising vehicle ownership in Africa by providing revenue-based vehicle financing to mobility entrepreneurs. The startup raised a US$63.2 million Series A debt and equity funding round in September, and is Uber’s exclusive vehicle financing and supply partner in Sub-Saharan Africa.
Lori Systems, meanwhile, provides supply chain management solutions to cargo owners, ensuring flexibility, reliability and cost savings. The Kenya-founded startup opened operations in Uganda, Rwanda and South Sudan in 2018, and expanded to Nigeria in 2019. It is also a serial fundraiser, bagging a sizeable Series A round in 2019 and further investment last year.
The partnership between the two startups will focus on delivering access to affordable vehicle financing within Africa’s trucking and logistics industry, where penetration for truck financing is lower than one percent. By combining Moove’s 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.
A launch in Kenya will be followed by rollout in Nigeria using the same revenue-based financing and credit decision model that Moove has developed with Uber. 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 programme for all truck drivers. With up to 100 per cent 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.
“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. Lori’s efforts to leverage data-driven and tech-enabled solutions have recorded significant progress in driving further efficiency in the African logistics industry; this has been impressive and very much aligns with our mission,” said Ladi Delano, co-founder and CEO of Moove.
“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. The partnership with Moove enables us to design innovative and flexible financing options, using data we have captured over the years, to allow transporters fund new trucks and increasingly grow their fleet and businesses,” said Uche Ogboi, CEO of Lori Systems.
“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.”