Uber-Backed Moove Acquires YC-Backed Brazilian Car Rental Startup

Moove, an Uber-backed mobility fintech company, has acquired Kovi, a Y Combinator-backed Brazilian urban mobility provider.

“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,” Ladi Delano, Co-Founder and Co-CEO of Moove, said in a statement.

Following the deal, Kovi will continue to operate under its existing brand with its executive and management teams remaining in place, Moove confirmed.

Moove’s Growth and Expansion

Founded in 2020 by Ladi Delano and Jide Odunsi, Moove provides vehicle financing solutions for ride-hailing and delivery drivers through a credit-scoring system that allows them to purchase vehicles and pay in installments from their earnings.

Moove’s rapid growth, backed by partnerships with industry leaders like Uber and Alphabet’s Waymo, has positioned the company as a leader in mobility fintech. What began with just 76 cars in Nigeria has grown into a global business with 36,000 vehicles across 19 cities and six continents.

With this acquisition, Moove’s annual recurring revenue (ARR) jumps to $275 million, up from $115 million in March 2024. According to Bloomberg, the deal places Moove among the top three fleet operators and financiers of ridesharing vehicles worldwide. The company has also committed to ordering at least 15,000 new vehicles each year to meet growing demand.

The acquisition also expands Moove’s presence in Latin America, where it recently launched operations in three cities in Colombia and Mexico. Brazil, Latin America’s largest ride-hailing market, is now crucial to Moove’s long-term growth strategy.

AI-Driven Mobility: A Key Focus

São Paulo-based Kovi, founded in 2018, has focused on making car ownership more affordable and accessible through flexible financing and rental options.

“I met [Moove’s] founders many years back when they were scaling their business in Africa, and I was immediately impressed by their purpose-driven approach, which is also a perfect match to our culture,” Adhemar Milani Neto, CEO of Kovi, said in a statement.”Together, I believe we will become a truly global category-defining business and will leverage scale and deep expertise never seen in our market.”

A strategic benefit of this acquisition is Kovi’s proprietary IoT (Internet of Things) software and advanced driver behavior algorithm, which will integrate into Moove’s AI mobility strategy.

Image credit: Moove