Vehicle finance startup Moove raises $30M in debut sukuk for UAE expansion

Nigeria-based Moove, which provides revenue-based vehicle financing, has raised $30 million in a private placement Islamic bond debut.

According to a report by Reuters, Franklin Templeton's Middle East unit is arranging the sukuk. It is a financial instrument similar to a bond which is structured in a sharia-compliant debt format. It is structured as a sukuk al-istisna.

Ladi Delano, Co-founder and co-chief executive, said in a statement, "Moove will use the funds to scale to 2,000 EVs in the UAE over the coming year. We estimate that this fleet of EVs will contribute to a reduction of over 5,000 metric tonnes of carbon dioxide emissions per year to help cities like Dubai meet their ambitious Net Zero targets."

As part of its launch in the UAE, the startup will be rolling out its EV charging app, Moove Charge. It is end-to-end charge experience and complete EV charging network app specifically for ride-hailing drivers. 

Earlier this year, the startup launched its operations in London and India, and aims for close to 60% of the vehicles it finances to be electric. Its equity investors include Palm Drive Capital, AfricInvest, Kreos Capital, Speedinvest, Tekton Ventures, Left Lane Capital, and Clocktower Technology Ventures.

Mohieddine Kronfol, CIO, Global Sukuk and MENA Fixed Income, Franklin Templeton, added that the company is pleased to lead the sukuk transaction, which complements its global sukuk and Sharia compliant private market strategies.

“The transaction also further validates the opportunity we have been arguing exists in private credit across the region, combining attractive yields with security and credit control” said Kronfol.