Moove, an Uber-backed Nigerian startup that finances vehicles for ride-hailing drivers has acquired Brazilian mobility company Kovi, in an all-share deal bolstering its expansion plans beyond Africa.
The acquisition makes Kovi a wholly owned subsidiary of Moove, creating one of the world’s top three fleet operators and financiers of ride-sharing vehicles by revenue, according to Moove co-founder Ladi Delano. The deal increases Moove’s fleet to 36,000 vehicles and doubles its recurring annual revenue (ARR) to $275 million, he said. The $750 million-valued startup reported a $115 million ARR in March 2023.
“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,” Delano said in a post on the company’s website.
“Kovi’s proprietary IoT software and advanced driver behaviour models complement our existing capabilities, supporting our focus on safety, efficiency, and innovation in AI mobility.”
The acquisition is driven by Moove’s pursuit of scale. The company began expanding into the U.S. last August, seeking profitability. In December 2024, the Nigerian startup struck a deal that will see the company oversee fleet operations and charging infrastructure to support Waymo’s driverless service, Waymo One Service in Phoneix and Miami.
The Kovi acquisition expands Moove’s reach to 19 cities across 6 continents. It will leverage Kovi’s IoT software and advanced driver behaviour algorithm to enhance Moove’s offerings including supplies of drive-to-own vehicles, taxi services, and autonomous fleets. The startup, founded by Ladi Delano and Jide Odunsi, began with 76 vehicles in 2020.
The deal provides Moove with a significant foothold in Brazil, Latin America’s largest ride-hailing market. Kovi will continue operating in Brazil and Mexico, with plans for further expansion in the region.
“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 LaTam now with robustness with such strong partners,” Adhemar Milani Neto, CEO of Kovi said. Moove has raised over $500 million in equity and debt since inception.
