Nigeria-based mobility fintech startup Moove has partnered with Kenyan e-logistics company Lori system to deliver access to affordable vehicle financing in Africa’s trucking and logistics industry, where truck financing is less than one percent, according to media reports. Moove recently raised a funding of $63.2 million in September and has become Uber’s exclusive vehicle financing and supply partner in Sub-Saharan Africa.
Meanwhile, Lori Systems provide supply chain management solutions to cargo owners where they make sure their customers are provided with flexibility, reliability and cost savings. The company has also opened branches in Uganda, Rwanda and South Sudan in 2018, along with marking its presence in Nigeria in 2019.
With the help of Moove’s revenue-based financing model and credit system, along with Lori Systems’ data-driven logistics marketplace, both the companies will focus on increasing the capacity of their transporters to match trucking demands in East and West Africa.
The launch in Kenya will be followed by another rollout in Nigeria in the near future, where the same revenue-based financing and credit decision model will be used that Moove developed with Uber. The highly-rated transporters on Lori Systems’ platform will get the loans first, thereby allowing them to expand their fleet. They will also be able to access a drive-to-own programme for all truck drivers
Ladi Delano, co-founder and CEO of Moove told the media, “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.”