Moove acquires Brazilian car rental firm in share deal

Moove, a Nigerian startup that provides financial access to vehicle ownership, has acquired Brazil’s Kovi, a car rental company, as part of its strategy to expand beyond Africa.

In an all-share deal, Moove will issue its shares to Kovi’s shareholders, foregoing a cash payment. The financial terms of the transaction were not disclosed in the statement released on Wednesday.

The Uber-backed startup revealed that the acquisition will position Moove, valued at $750m, among the top three global fleet operators and financiers of ride-sharing vehicles by revenue.

The startup said it began operations with 76 cars in Lagos in 2020 and now operates a fleet of 36,000 vehicles across 19 cities globally.

With Latin America emerging as a key market, the acquisition strengthens its foothold in Brazil and Mexico.

The completion of the transaction is subject to customary closing conditions, including approval from the Brazilian antitrust authority.

Moove’s co-CEO, Ladi Delano, described Kovi’s technology, including its proprietary IoT software and driver behavior algorithms, as complementary to Moove’s existing capabilities, particularly in safety and efficiency.

“We’re thrilled to welcome them to the Moove family. 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. “

Kovi, founded in 2018, has established itself as a pioneering force in making car ownership more accessible and efficient through innovative technology and financial solutions.

The CEO of Kovi, Adhemar Neto, expressed that Moove has done a fantastic job at scaling their business on a global scale and with the right strategic angles.

“I met the 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.

“Together, I believe we will become a truly global, category-defining business and will leverage scale and deep expertise never seen in our market. We are also excited to continue our expansion across Latin America  now with robustness with such strong partners,” he said .

In March 2024, Uber invested $100m in Moove during a Series B funding round, elevating the startup’s valuation to $750m.

This round was led by Uber and included participation from Mubadala and other investors.