Moove to raise USD 30 million from sukuk to fund UAE expansion

Moove raises USD 30 million from its debut sukuk to fund the building of the largest EV ride-hailing fleet in the UAE.

Moove, a global mobility fintech and Uber’s largest vehicle supply partner in EMEA founded by Nigerian Ladi Delano and Jide Odunsi, is raising USD 30 million from a debut sukuk issuance arranged by Franklin Templeton Investments (ME) Ltd.. The company aims to build the largest EV ride-hailing fleet in the MENA region.

Moove: Appealing to Islamic investors

The competition of the sukuk will allow Moove to appeal to Islamic investors interested in environmentally-friendly investment opportunities. The issuance of the sukuk has been privately placed and structured as a Sukuk al- istisna, a Shari’ah-compliant contract for the order to manufacture EVs.

Ladi Delano, co-founder and co-CEO of Moove, said, “This financing is a milestone for Moove – our first Sukuk issuance which showcases our growth and sustainability as a global company. Equally important is that this furthers our mission to build the biggest EV ride-hailing fleet in the region, to drive forward mobility electrification and enable cities to reach their net-zero targets.”

The funds will be used to create a fleet of 2,000 EVs in the UAE over 2023. Moove estimates that this fleet of EVs will contribute to a reduction of over 5,000 metric tons of CO2 emissions per year.

Mohieddine Kronfol, CIO, Global Sukuk and MENA Fixed Income, Franklin Templeton, said, “Franklin Templeton is pleased to lead this innovative sukuk transaction that simultaneously complements our global sukuk and Sharia compliant private market strategies, while supporting the development of mobility and fintech ecosystems in the UAE initially, followed by more markets in the future. 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. We wish Moove’s management team much success and look forward to seeing their cars on the road, as well as the social and environmental impact their business can have on our region.”

A companion app

Moove will also launch its EV charging app, Moove Charge, in the UAE. The app allows users to locate charge points, display charge points compatible with their vehicle, show charge point availability in real-time, filter by charge speed, start and stop charging and wallet functionality. The app forms part of Moove’s efforts to work with local partners across the MENA region to foster a stronger EV infrastructure.

Moove launched its European operations in August, when it began its EV rent-to-buy model in London. The company also launched in India and will launch 5,000 CNG and EVs across Mumbai, Hyderabad and Bangalore in its first year.

Electric vehicles are gaining traction across the MENA region and Africa. ThinkBikes, a Nigerian startup providing access to electric vehicles and cooling solutions, was recently shortlisted for the Royal Academy of Engineering’s Africa Prize for Engineering Innovation.