Zoomo, an Australian startup that builds utility electric bikes for delivery riders, raised an additional $20 million in equity to close its Series B.
In November, the company raised $60 million in equity and debt for its Series B, which it used to fund additional software development and other vehicles to be developed. The additional funds, which bring Zoomo’s total funding to $101.5 million, will be used for much the same purpose, specifically hiring more team members globally and investing in other fleet and vehicle management offerings for mechanics and customers, as well as the development of an end rider app, Mina Nada, co-founder and CEO of Zoomo, told TechCrunch.
The startup is also continuing to develop and roll out its new high-performance utility e-bike, the Zoomo One, and investing in new vehicle form factors and accessories.
Zoomo offers its electric bikes as a flexible weekly subscription for construction workers for a price ranging from $20 per week to $35 per week in the United States, which includes maintenance and support. Often, these prices can be cheaper if a gig worker signs up through a partnership with one of the app-based delivery companies like UberEats or DoorDash. It also provides fleets of e-bikes (and mopeds manufactured by third parties, in some markets), as well as fleet management software, to enterprise customers like Domino’s.
Since Zoomo’s inception in 2017, it has expanded to 16 cities in six countries across North America, Asia-Pacific, and Europe, with Spain, France, and Germany added to the list. list last year. The startup claims its revenue has increased 4x globally and its business operations have grown 20x in 2021, but from what has not been clarified.
“2021 has been a transformational year for Zoomo as we have seen businesses and fleet managers, in addition to on-demand workers, benefit from our innovative platform,” Nada said in a statement. “2022 is the year we kick things into high gear… At Zoomo, we see a world in the next decade where every last mile delivery will be made on a light electric vehicle backed by the Zoomo ecosystem. will help take it one step further to make it a reality.
The raise was led by Collaborative Fund, with strategic investors MUFG Innovation Partners, SG Fleet, Akuna Capital and Wind Ventures also joining the round. This is the first time that Zoomo has secured strategic funding and marks the potential for future partnerships and beneficial initiatives, particularly in Latin America and Japan – Wind is the venture capital arm of COPEC, one of the largest companies energy and forestry industries in Latin America, and MUFG is the corporate VCarm of Mitsubishi UFJ Financial Group‘s open innovation strategy.