Stockholm-based Voi, a micro-mobility startup that offers electric scooters for last-mile transportation, announced that it has secured $25M (approximately €22.87M) in an oversubscribed funding round. The company also obtained extra debt financing for vehicles.
The new equity and debt funds will fuel the expansion of Voi’s e-scooter and e-bike fleet, capitalising on increasing consumer demand and industry consolidation.
Existing investors, such as VNV Global, Raine Group, Nineyards Equity, Balderton, Creandum, Project A, Stena, Black Ice Capital, along with founders and employees, joined the latest funding round.
Per Brilioth, CEO of VNV Global, says, “We’ve been proud partners with Voi from the very beginning, and we continue to be impressed by the team’s exceptional execution.”
“Over the past few years, the team has transitioned from hypergrowth to sustainable growth, demonstrating industry-leading efficiency and a remarkable track record with both riders and cities.”
“Voi continues to spearhead the transformation of mobility across Europe, and we’re excited to participate in this funding that will take Voi to profitability. We look forward to continue supporting Fredrik and the team.”
In addition to the funding round, around $85M in convertible loan notes from 2021 have been converted to equity, further solidifying Voi’s financial position.
Capital utilisation
Vio plans to use the fresh funding to roll out its 3rd-gen e-bikes and 7th-gen e-scooters across both existing and new markets during spring 2024, bolstering its fleet and presence.
Additionally, Voi will double down on its sustainability goals, aiming to enhance its environmental footprint, collaborate with cities to expand sustainable mobility choices, prioritise safety for riders and other road users, and maintain its reputation as a socially responsible operator with “leading” workplace standards.
CEO Fredrik Hjelm says, “We are very pleased with the continued confidence in Voi shown in this financing round. With this, we will advance our mission to provide safe, sustainable and reliable micromobility for everyone.”
“There is no doubt that micromobility is here to stay, and we will work closely with cities all over Europe to be the go-to micromobility operator. The micromobility industry is developing quickly with a maturing regulatory environment and improving margins, and the demand for our services continues to grow.”
“That is a strong base to build an exceptional company, and we are committed to long-term collaboration with cities and public transport providers to realise our vision of cities made for living. Amidst the rapid consolidation in the European market, this financing puts us in a great place to expand.”
Rent an e-scooter or e-bike
Voi was founded in 2018 by Adam Jafer, Douglas Stark, Fredrik Hjelm, and Keith Richman. It offers e-scooter-sharing services in partnership with cities and local communities.
The company says, “By making sustainable transportation options more widely available, we believe that we can improve quality of life in cities around the world, while also contributing to the fight against climate change.”
Voi’s mission is to provide safe, sustainable, and reliable micromobility solutions for all. Through a range of light mobility vehicles, the company empowers people to navigate urban areas according to their preferences.
The Swedish firm claims to be a carbon-neutral company since January 2020 and has adopted the United Nations’ Sustainable Development Goals (SDGs) as a guiding framework.
Currently, Voi operates in over 100 towns and cities across 12 countries. To date, the company boasts more than eight million riders and has served more than 240 million rides.
2023 performance and European position
The funding round follows a “strong” 2023 for Voi, which saw a record-breaking 68 million rides and won major tenders in key European cities like London and Vienna, reinforcing its position as the most trusted micromobility operator across the continent.
Fredrik Hjelm, CEO of Voi, says, “We had a strong 2023 where we continued to grow alongside improving margins on all levels. Over the past two years, our revenue has grown by nearly 50 per cent, our gross profit has more than doubled, and we’ve reduced overhead costs by almost 50 per cent.”
“In 2023, we achieved our first quarter of positive EBIT at the group level, and we remain focused on our commitment to achieving full profitability and positive cash flow. We’ve seen remarkable efficiency gains and have a suite of products and operational processes ready for rollout to further accelerate that progress.”
Hjelm adds, “Looking ahead, we see numerous promising opportunities as cities pivot from being car-centric to driving sustainable mobility, and consumers increasingly integrating micromobility into their daily routines. We are just getting started.”
In 2023, Voi nearly reached EBITDA profitability. The company achieved a 10 per cent increase in revenue and a 22 per cent growth in gross profit, resulting in a 49 per cent gross margin.
Additionally, the company’s EBITDA margin improved by 25 percentage points to -2.5 per cent, and EBIT saw a 35 percentage point increase year-over-year.