A Nigerian mobility fintech startup, backed by Uber, has completed the acquisition of a car rental startup in Brazil, a significant move in Latin America’s largest ride-hailing market. The acquisition marks a step forward in the global expansion of the startup, which currently operates in 19 cities across five continents.
The acquisition, an all-stock transaction, now makes Kovi’s investors shareholders in the Nigerian startup. Kovi had previously raised over $145 million from various investors. The acquisition allows Kovi’s investors to own shares in the Nigerian startup, which has received substantial investment from entities like Uber, Mubadala, and others. The acquisition is also a strategic move for the Nigerian startup’s AI mobility strategy, enhancing services and fleet management.
The proprietary technology and algorithms of the acquired company will play a crucial role in enhancing the existing move AI mobility strategy of the Nigerian startup, leading to improved services for customers globally, according to a statement by one of its co-founders.
This acquisition not only boosts the annual revenue of the Nigerian startup to $275 million but also signifies its expansion beyond Africa. With operations already in Colombia and Mexico, the acquisition further solidifies its presence in Latin America. The company’s fleet has now grown to 36,000 cars in operation across 19 cities on five continents, with ambitions to build the world’s largest ride-share fleet outside of Africa.
The CEO of the acquired company expressed optimism about the partnership, stating that the shared values and purpose-driven approach will lead to the creation of a globally impactful business with unmatched scale and expertise in the market.