Voi Technology, Swedish electric scooter sharing startup raises $85 million from investors
Market Expertz | November 29, 2019
The new round of raising capital was driven by Stockholm-based investment group Vostok New Ventures. Balderton Capital, Creandum and Raine Ventures, Voi’s prevailing investors additionally contributed.
Voi's successful funding comes along with questions arising from cautiousness amongst financial specialists and investors about over hyped and overvalued new companies that do not have a reasonable arrangement for how they will pursue future growth and create profits. So as to break-even the initial investment, Voi suggests that it will utilize the new money to build up its kick bikes to expand their life span. It will likewise support the improvement of programming to more readily comprehend where to put the vehicles overnight and observe how customers are leaving them.
A major concern for some municipal authorities has been individuals dumping bikes improperly on boulevards or even in streams. Accordingly, U.S. and European authorities have braced down on the bike rage to abstain from that sort of conduct. A progression of mishaps and in an event of one casualty provoked Singapore to pronounce e-bikes unlawful with the exception of on bicycle ways.
Voi, nonetheless, is facing firm challenge from some profoundly esteemed U.S. rivals. Hyped new businesses like Bird and Lime saw their valuations surge in 2018 as speculators rushed to the industry. Though currently, the two organizations which were established only two years back stay unprofitable.
Uber and its European competition Bolt have both entered the scooter business, progressively increasing the competition on new upstarts. Be that as it may, Voi plans to compete with its adversaries by concentrating on generating more profits. Voi has not unveiled its valuation, however the company is still in its early stage like a few of its rivals and has until now acquire 4 million clients who have taken 14 million rides with its e-scooters.