Moove Acquires Kovi: Uber-Backed Fintech Expands in Brazil

Moove Acquires Kovi to Expand Latin American Footprint

Moove, a mobility fintech company supported by Uber, has finalized the acquisition of Kovi, a Brazilian urban mobility provider. Originating in Africa, Moove provides vehicle financing solutions to drivers working with ride-hailing and delivery applications across six continents.

Deal Details and Financial Impact

While the specific financial terms haven’t been revealed, the transaction was completed entirely through a share exchange, resulting in Kovi becoming a fully owned subsidiary of Moove. Ladi Delano, Moove’s co-founder and co-CEO, indicated that this acquisition elevates the company’s annual revenue to $275 million.

This announcement follows a recent partnership between Moove and Waymo, focused on operating fleets of driverless vehicles in Phoenix and Miami. The collaboration highlights Moove’s commitment to innovation within the mobility sector.

Growth and Market Expansion

The acquisition of São Paulo-based Kovi represents a crucial step in Moove’s ambition to establish the world’s largest rideshare fleet. The company has experienced substantial growth since its inception in 2020, expanding from an initial fleet of 76 vehicles in Lagos, Nigeria, to a current operational capacity of 36,000 cars across 19 cities globally.

Latin America is now recognized as a key strategic market for Moove. Both Moove and Kovi share a common objective: to provide accessible financing options for rideshare drivers. Kovi, backed by Y Combinator, was founded in 2018 with the goal of increasing vehicle ownership accessibility in Brazil.

Operational Continuity and Future Plans

Following Brazilian antitrust approval, Kovi will continue operating under its existing brand identity, with its current executive and management teams remaining in place. Moove intends to extend Kovi’s operations further throughout Latin America.

Recent launches in Colombia and Mexico demonstrate Moove’s commitment to the region. This acquisition solidifies Moove’s position in Latin America, particularly within Brazil, the largest ride-hailing market in the area.

Synergies and Technological Integration

Delano emphasized the shared values and goals between the two companies. “Kovi is one of the top two players in Brazil,” he stated, “positioning us in a leading role within the largest Latin American market.”

Moove’s business model encompasses vehicle supply to ride-hailing platforms, including its Drive-to-Own program and an expanding autonomous vehicle (AV) division leveraging artificial intelligence.

AI and Fleet Management

While AI is central to Moove’s AV initiatives, Delano explained that the company’s AI strategy will be integrated across all aspects of its operations. This includes optimizing existing ride-hailing services and enhancing fleet management efficiency.

Kovi’s proprietary technology and algorithms are expected to enhance Moove’s AI capabilities, leading to improved service and product offerings for customers worldwide.

Kovi’s Background and Investor Alignment

The financial status of Kovi prior to the acquisition remains unclear. The company last secured funding in 2021 through a $104 million Series B round led by investors such as Valor Capital, Prosus Ventures, and Quona Capital.

Despite raising capital for expansion, Kovi’s focus remained primarily on the Brazilian market, reporting $45 million in ARR with a 15% month-over-month growth rate that same year.

Investor Confidence and Future Outlook

The all-share transaction ensures that Kovi’s investors now hold shares in Moove, aligning their financial interests. Kovi CEO Adhemar Milani Neto expressed optimism about the deal, highlighting the cultural compatibility and shared vision between the two organizations.

He believes the combined entity will become a globally recognized leader in the mobility sector, leveraging scale and expertise.

Moove’s Funding and Strategic Focus

Moove previously raised $100 million in a Series B round led by Uber, achieving a valuation of $750 million. Since its launch five years ago, the company has secured over $500 million in both debt and equity funding from investors including Mubadala, BlackRock, Franklin Templeton, Janus Henderson, and the IFC (World Bank).

Delano indicated that the company’s immediate focus will be on achieving profitability this year and realizing its goal of building the largest ride-hailing fleet globally, rather than pursuing additional fundraising efforts.