Post by account_disabled on Mar 13, 2024 3:29:23 GMT -5
German electric scooter rental company Tier announced Tuesday that it has raised $ million in a funding round led by SoftBank's second Vision Fund.
It is the first time the Japanese tech investor has bet on the nascent scooter-sharing space and comes as several countries in Europe re-enter lockdowns to curb a resurgence of coronavirus cases. Electric scooter companies were hit hard by the first round of lockdowns, with several suppliers cutting jobs to survive.
Tier, for its part, says it has not had to make any pandemic- related layoffs . A spokesperson said the company “made one or two performance-related adjustments as part of standard business practice, but nothing outside of that.”
SoftBank made the investment in Tier through Vision Fund , a $ billion successor to its original technology fund that gained infamy for its troubled bet on office rental service WeWork. The rou Caseno Email List d also attracted backing from existing investors including Mubadala, Northzone, Goodwater Capital, White Star Capital, Novator and RTP Global.
However, Mubadala did not invest in Tier as part of Vision Fund Abu Dhabi's sovereign wealth fund contributed to SoftBank's first Vision Fund, but has hesitated to back the new fund.
According to the Financial Times, which first reported the news, Tier is now valued at just under $ billion. That means it is close to securing a “unicorn” valuation and, according to the FT, makes it the second most valuable electric scooter company after Bird, overtaking Lime.
Cost effectiveness
Some electric scooter startups say they saw a rapid recovery in demand over the summer as economies reopened. Many have been rushing to take part in trials in the UK as the country explores the legalization of electric scooters.
But fears remain over the financial sustainability of the sector, especially as several European countries re-enter lockdowns and winter approaches. However, Tier says he managed to reach profitability for the first time this year.
Tier has been profitable since June, company CEO Lawrence Leuschner said. “We will be very close to full profitability this year,” he added.
Tier said it would use the cash to expand in Europe and install thousands of charging stations in several cities to power its vehicles. The company, which launched its own electric moped sharing service in May, said it is also looking to raise additional debt financing to launch more vehicles.
“ Micromobility fills a large gap left by traditional city car use and presents a viable alternative to legacy transit systems,” said Yanni Pipilis, managing partner at SoftBank Investment Advisers. “Tier has a proven track record of building long-standing partnerships with cities and regulators, combined with a technology-enabled approach to developing leading propositions for clients.”
It is the first time the Japanese tech investor has bet on the nascent scooter-sharing space and comes as several countries in Europe re-enter lockdowns to curb a resurgence of coronavirus cases. Electric scooter companies were hit hard by the first round of lockdowns, with several suppliers cutting jobs to survive.
Tier, for its part, says it has not had to make any pandemic- related layoffs . A spokesperson said the company “made one or two performance-related adjustments as part of standard business practice, but nothing outside of that.”
SoftBank made the investment in Tier through Vision Fund , a $ billion successor to its original technology fund that gained infamy for its troubled bet on office rental service WeWork. The rou Caseno Email List d also attracted backing from existing investors including Mubadala, Northzone, Goodwater Capital, White Star Capital, Novator and RTP Global.
However, Mubadala did not invest in Tier as part of Vision Fund Abu Dhabi's sovereign wealth fund contributed to SoftBank's first Vision Fund, but has hesitated to back the new fund.
According to the Financial Times, which first reported the news, Tier is now valued at just under $ billion. That means it is close to securing a “unicorn” valuation and, according to the FT, makes it the second most valuable electric scooter company after Bird, overtaking Lime.
Cost effectiveness
Some electric scooter startups say they saw a rapid recovery in demand over the summer as economies reopened. Many have been rushing to take part in trials in the UK as the country explores the legalization of electric scooters.
But fears remain over the financial sustainability of the sector, especially as several European countries re-enter lockdowns and winter approaches. However, Tier says he managed to reach profitability for the first time this year.
Tier has been profitable since June, company CEO Lawrence Leuschner said. “We will be very close to full profitability this year,” he added.
Tier said it would use the cash to expand in Europe and install thousands of charging stations in several cities to power its vehicles. The company, which launched its own electric moped sharing service in May, said it is also looking to raise additional debt financing to launch more vehicles.
“ Micromobility fills a large gap left by traditional city car use and presents a viable alternative to legacy transit systems,” said Yanni Pipilis, managing partner at SoftBank Investment Advisers. “Tier has a proven track record of building long-standing partnerships with cities and regulators, combined with a technology-enabled approach to developing leading propositions for clients.”