Investors update: Moove valued at $550m in $76m round from Mubadala, BlackRock

Moove valued at $550m in $76m round from Mubadala, BlackRock

Highlights

• Moove, an African mobility fintech that provides vehicle financing to drivers of ride-hailing platforms like Uber and other gig networks, has raised $78 million in a new round.
• The round includes $28 million in equity from new and existing investors led by Mubadala Investment Company, $10 million in venture debt from funds and accounts managed by BlackRock, and $38 million in previously undisclosed funds raised during the prior twelve months.
• The news comes a year after Moove raised a $105 million Series A2 financing ($65 million equity and $40 million debt) and the new money will be used to help the company achieve profitability over the next 12 months.

Source: Financial Times

Our Takeaway

The funding—coming from some of the world’s largest investors— is a rare bright spot for a VC market that has dipped at a time of soaring interest rates and appetite for fast-growing but unprofitable companies has fallen. Moove, which closed its $23 million Series A round in 2021, has employed several types of debt financing since inception from British International Investment, Franklin Templeton Investments, and Absa. The latest round brings its total funding to $325 million ($150 million in equity and over $175 million in debt) and is now valued at $550 million.

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South Africa’s Knife Capital closes $50m Series B fund

Highlights

• South Africa-based Knife Capital has successfully concluded the final close of its $50 million African Series B expansion fund, Knife Fund III. 
• Knife Capital, a significant player in the African venture capital space, curates a deal pipeline of early-stage investments through its Grindstone Accelerator program and has a track record of exit-centric business building.
• The latest fund aims to bridge a crucial funding gap that hinders the growth of innovation-driven companies across the continent, providing them with the necessary capital.

Source: TechCrunch

Our Takeaway

African start-ups with immense potential often face challenges in securing follow-on funding beyond the Series A stage, stalling their progress toward global expansion. Knife Fund III aims to address this issue head-on by supporting high-growth, scalable South African B2B technology companies that exhibit impact potential and promising returns through various exit options. Moreover, the fund is poised to collaborate with adept local partners to extend its support to entrepreneurs in other African countries who align with its investment profile.

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Airtel Africa to go public via an IPO in Uganda

Highlights

• Airtel Africa plans to list shares on the Uganda Securities Exchange (USE) through its wholly-owned subsidiary in the East African country, Airtel Uganda Limited. 
• The telco intends to proceed with an initial public offer (IPO) of 8 billion ordinary shares which represent 20% of Airtel Uganda, in line with the National Telecom Operator rules. 
• The IPO will be available to retail investors via Airtel Money’s platform, in addition to traditional channels, in an effort to increase retail participation. All of these moves are subject to regulatory approvals. 

Source: TechCabal

Our Takeaway

In 2019, Uganda directed telcos in the country to list at least 20% of their shares on the local bourse within two years, putting pressure on multinationals such as MTN, Airtel, and Lycamobile. MTN went public in 2021 through an IPO that attracted local and regional investors. While these developments encourage local ownership in some of the country’s most profitable companies and deepen the capital market, perhaps the most exciting bit is the prospect of Ugandans buying Airtel shares via mobile money—showing just how far mobile phones have revolutionized Africa!