Mobility FinTech Moove Raises $30M in Debut Sukuk for UAE Expansion

Moove, an African mobility FinTech that offers vehicle financing to drivers of travel companies such as Uber and other gaming platforms, raised $30 million from a debut sukuk issuance.

It was organized by Franklin Templeton Investments, as Moove aims to build the largest electric car fleet in the Middle East and North Africa.

Founded in 2020, Moove said it would use the funds to scale to 2,000 electric cars in the UAE in the coming year, “creating sustainable economic opportunities while accelerating the electrification of mobility and improving the travel experience for passengers in the region”.

The company predicted that this fleet of electric cars would contribute to a reduction of more than 5,000 metric tons of carbon dioxide emissions per year to help cities like Dubai reach their net-zero goals.

“This funding is a milestone for Moove – our first sukuk issuance that demonstrates our growth and sustainability as a global company,” said Ladi Delano, co-founder and co-CEO of Moove.

“Equally important, this furthers our mission to build the largest electric vehicle fleet in the region, to drive mobility electrification and enable cities to achieve their net-zero goals.”

As part of the UAE launch, the startup will release its EV charging app, Moove Charge. Originally launched in London in August, the app allows users to find charging points, view their availability in real-time, filter by charging speed and start and stop charging the vehicle.

The Emirates, the second-largest economy in the Arab region, is investing Dh600 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 targeting electric mobility, according to consulting firm Arthur D Little.

The UAE EV market, which is currently in its early stages, is projected to grow at an annual rate of 30 percent between 2022 and 2028, according to the Global Electric Mobility Readiness Index 2022 compiled by Arthur D Little.

Moove offers income-based vehicle financing and financial services to mobility entrepreneurs. Embedding its alternative credit scoring technology into ride-hailing, e-logistics and instant delivery platforms, Moove said it uses proprietary performance and income analytics to underwrite loans for drivers previously excluded from financial services.

Moove said the latest funding has brought the total capital raised so far to more than $280 million, and customers have completed over 11 million trips in Moove-financed vehicles.

The successful completion of its debut sukuk will allow Moove to attract Islamic investors 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 produce electric cars, it added.

“Franklin Templeton is pleased to lead this innovative sukuk transaction which simultaneously complements our global sukuk and Shariah-compliant private markets 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 confirms the opportunity we have argued exists in private credit across the region, combining attractive yields with security and credit control.”

With a commitment to ensure that at least 60 percent of the vehicles Moove finances globally are electric, the company is working with value chain partners across the Mena region to facilitate this transition in places where charging infrastructure is still limited.

The company launched in Europe in August when it started up its 100 percent EV rent-to-buy model in London.

In July 2020, it joined forces 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 electric car partner on Uber’s platform in London with plans to take up to 10,000 electric cars by the end of 2025.

Updated: 8 December 2022 at 05.00