Zoomo, an Australian startup building e-bikes for delivery drivers, has raised an additional $20 million in equity to close out the Series B round.
In November, the company raised $60 million in equity and debt for its Series B, which it used to fund further software development and more vehicles to expand. The additional funds, bringing Zoomo’s total funding to $101.5 million, will be used for much the same purpose, specifically hiring more team members worldwide and investing in further fleet and vehicle management offerings for both mechanics and customers, as well as developing an end rider app, Mina Nada, co-founder and CEO at Zoomo, told TechCrunch.
The startup is also continuing the development and rollout of its new high-performance e-bike, the Zoomo One, and is investing in new vehicle form factors and accessories.
Zoomo offers its e-bikes as a flexible, weekly subscription to gig workers for anywhere from $20 per week to $35 per week in the US, including maintenance and support. Often those 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 supplies fleets of e-bikes (and mopeds manufactured in some markets), as well as fleet management software, to corporate customers such as Domino’s.
Since its founding in 2017, Zoomo has expanded to 16 cities in six countries in North America, Asia-Pacific and Europe, and last year Spain, France and Germany were added to the list. The startup says its global revenue grew 4x and its business grew 20x in 2021, but it was not clear from what.
“2021 was a transformative year for Zoomo as we saw businesses and fleet managers, in addition to gig workers, benefit from our innovative platform,” Nada said in a statement. “2022 is the year we step up a gear… At Zoomo, we envision a world within the next decade where every last-mile delivery will be completed on a light electric vehicle supported by the Zoomo ecosystem. Our investors will help us get one step closer to making this a reality.”
The raise was led by Collaborative Fund, with strategic investors MUFG Innovation Partners, SG Fleet, Akuna Capital and Wind Ventures also participating in the round. This is the first time Zoomo has secured strategic funding and highlights the potential for future beneficial partnerships and initiatives, particularly in Latin America and Japan. Wind is the venture capital arm of COPEC, one of LatAm’s largest energy and forestry companies, and MUFG is the corporate VCarm of Mitsubishi UFJ Financial Group’s Open Innovation Strategy.