Uber-backed Nigerian mobility fintech startup Moove has acquired Kovi, a YC-backed Brazilian car rental startup.
The acquisition will support the startup’s continued global expansion, with operations now spanning 19 cities across six continents. Following this deal, Kovi will continue to operate under its existing brand with its executive and management teams remaining in place, Moove confirmed.
Moove and Kovi’s Deal is Strengthening Global Mobility
“This transaction not only strengthens our footprint in Latin America and reinforces our position as a dominant player in global mobility, but it also underscores our commitment to contributing to the Brazilian economy,” Ladi Delano, Co-Founder and Co-CEO of Moove, said in a press release.
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The acquisition is an all-stock transaction that makes Kovi’s investors shareholders in Moove. YC-backed Kovi had raised over $145 million from investors, including Accel, Spectra Investments, Valor Capital, Prosus Ventures, and Quona Capital.
In addition, this acquisition has increased Moove’s annual recurring revenue (ARR) to $275 million, up from $115 million in March 2024. According to Bloomberg, this deal places Moove among the top three fleet operators and financiers of ridesharing vehicles globally.
The Brazilian car rental startup’s investors will now own shares in Moove, which has raised about $500 million in debt and equity from investors like Uber, Mubadala, BlackRock, Franklin Templeton, Janus Henderson, and the International Finance Corporation (IFC).
The acquisition is also crucial for Moove’s AI mobility strategy, which will span the entire business, from optimizing its ride-hailing services to improving fleet management.
What Kovi is Bringing To The Table
São Paulo-based Kovi, founded in 2018, focuses on making car ownership more affordable and accessible through flexible financing and rental options.
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“I met [Moove’s] founders many years back when they were scaling their business in Africa, and I was immediately impressed by their purpose-driven approach, which is also a perfect match to our culture,” Adhemar Milani Neto, CEO of Kovi, said in a statement. ”Together, I believe we will become a genuinely global category-defining business and leverage scale and deep expertise never seen in our market.”
Kovi’s proprietary technology and algorithms will “complement and strengthen our existing move AI mobility strategy and ensure that we can start to deliver an improved service and product to our customers around the world,” said Moove’s co-founder and co-CEO Ladi Delano.
About Nigerian Uber-backed Mobility Fintech Startup, Moove
Moove, founded in Nigeria by Ladi Delano and Jide Odunsi, enables delivery drivers to finance vehicles and start driving with partners like Uber in three simple steps: apply, get verified, and drive.
The company launched with 76 vehicles in Lagos in 2020 and has expanded to 36,000 vehicles. The mobility fintech startup’s website claims over 52,787,109 trips have been completed. Additionally, Moove is currently available in 19 cities across six continents.
Over the years, the Uber-backed firm has secured significant funding. In 2023, $8 million was raised by Absa Corporate and Investment Banking to reach Ghana, bringing its total investment from the bank to $28 million, Fintech Global reports. In March 2024, TechCrunch mentioned that $100 million was raised in a Series B round led by Uber to drive its expansion.
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According to its website, Moove has also attached a sustainability mission to its business model, seeking to create “the largest and most productive hybrid and EV fleet in the world.”
Main Image: Moove’s Co-founders Ladi Delano and Jide Odunsi. Image Credit: Moove