Moove, a mobility fintech backed by Uber and focused on vehicle financing for ride-hailing and delivery drivers across six continents, has purchased Kovi, a provider of urban mobility services based in Brazil.
Although the specific value of the acquisition has not been disclosed, Moove has confirmed that it was an all-share transaction, resulting in Kovi becoming a wholly-owned subsidiary of Moove.
Ladi Delano, Moove’s co-founder and co-CEO, shared with TechCrunch that this strategic acquisition will elevate the fintech’s annual revenue to $275 million. Just last March, the company reported an annual recurring revenue (ARR) of $115 million.
This announcement follows Moove’s recent partnership with Waymo to initiate driverless vehicle fleet operations in Phoenix and Miami.
Delano emphasized that acquiring Kovi, based in São Paulo, is a pivotal move towards Moove’s ambition of establishing the largest rideshare fleet globally. Starting with just 76 vehicles in Lagos, Nigeria, in 2020, Moove has expanded to a fleet of 36,000 cars operating across 19 cities on six continents, with Latin America emerging as a crucial market.
The merger also brings together two firms focused on addressing similar challenges—delivering financing solutions for rideshare drivers. Founded in 2018 and backed by Y Combinator, Kovi was created to enhance vehicle ownership accessibility in Brazil. Post-acquisition, subject to approval from the Brazilian antitrust authority, Kovi will retain its brand identity and maintain its current executive and management teams.
While maintaining the Kovi brand within its existing markets of Brazil and Mexico, Moove intends to further expand throughout Latin America. The company has recently initiated operations in three cities in Colombia and Mexico, thereby solidifying its presence in Brazil, the largest ride-hailing market in the region.
“We are thrilled to collaborate with the exceptional Kovi team, who have built their company to tackle the same issues we recognized in Nigeria,” Delano stated. “Kovi ranks among the top two players in Brazil, enabling us to strengthen our position not only in the Latin American market but also within the largest single market through this acquisition.”
Moove has established a robust position in the global mobility marketplace by providing vehicle supply to ride-hailing platforms. This includes its flagship Drive-to-Own initiative, a taxi employment model, and an emerging focus on autonomous vehicle (AV) services supported by AI technology.
Although AI is integral to its AV services, Delano explained that the company’s AI mobility strategy encompasses all areas of the business, from optimizing traditional ride-hailing operations to enhancing fleet management. The acquisition of Kovi is expected to align with this strategy, as Kovi’s proprietary technologies and algorithms will enhance Moove’s existing AI initiatives, improving service delivery to customers globally.
The financial status of Kovi prior to its acquisition by Moove remains uncertain. The last known funding round for Kovi raised $104 million in a Series B round in 2021 from investors such as Valor Capital, Prosus Ventures, and Quona Capital. Despite intentions to expand across Latin America, Kovi primarily concentrated on the Brazilian market, reporting an ARR of $45 million and a month-over-month growth rate of 15% in the same year.
Consequently, the all-share acquisition aligns Kovi’s investors as shareholders in Moove, creating a unified growth path. Kovi’s CEO, Adhemar Milani Neto, expressed optimism regarding the partnership: “I first met the founders, Ladi Delano and Jide Odunsi, many years ago when they were scaling their operations in Africa, and their purpose-driven approach resonated strongly with our values. Together, we have the unique opportunity to transform the market and establish a global, category-defining enterprise.”
Last year, Moove successfully raised a $100 million Series B round led by Uber, achieving a valuation of $750 million. Since its inception five years ago, the mobility fintech has drawn over $500 million in both debt and equity from prominent investors including Mubadala, BlackRock, Franklin Templeton, Janus Henderson, and the IFC (World Bank).
Delano chose not to comment on potential future fundraising initiatives, instead highlighting the focus on driving profitability in their capital-intensive operations this year and advancing the vision of building the largest global ride-hailing fleet.
Compiled by Techarena.au.
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