e-bike startup Zoomo tops up Series B with another $28 million

Electric delivery bike startup Zoomo has raised an extra US$20 million (A$28m) just three months after bagging $80 million in a Series B.

The B+ raise was led by new investor New York VC Collaborative Fund, joined by strategic investors MUFG Innovation Partners, the VC arm of Mitsubishi UFJ; local mobility solutions company SG Fleet; WIND Ventures, the VC arm for Latin American energy and mobility business COPEC; and Akuna Capital.

The fresh cash takes the total funding raised by the five-year-old startup to more than $100 million, in equity and debt.

In November Atlassian co-founders Mike Cannon-Brookes and Scott Farquhar backed Zoomo’s $80 million series B, leading the raise via Grok Ventures, Skip Capital. Existing investors, AirTree Ventures, the Clean Energy Finance Corporation (CEFC), Contrarian Ventures and Maniv Mobility were also in the round, which included $30 million in asset-backed debt from Viola Group.

Zoomo co-founder and CEO Mina Nada said 2021 was a transformative year for the startup, which grew by 4x globally and launched in three new countries. The enterprise side also grew 20x last year. The client base now includes UberEats, Doordash, JustEat Takeaway, Deliveroo, Domino’s, Pizza Hut and Milkrun.

The business is now operating in 16 cities in six countries including Australia, the US and UK, offering e-bike and e-moped fleet management and delivery solutions for both gig-workers and large fleet operators in the last-mile delivery space.

“We saw enterprises and fleet managers, in addition to gig-workers, benefit from our innovative platform. 2022 is the year we take the business up a gear,” he said.

“The series B+ surplus funding will enable us to grow more aggressively across the globe, and ultimately put more efficient, safe and clean transport solutions on our roads.

Collaborative has previously invested in Lyft, Whoop and Beyond Meat. Founder and Managing Director Craig Shapiro said they look forward to the company’s roll out in more cities.

“Delivering small packages and meals in a four-thousand-pound vehicle is inefficient and costly – both for customers and the environment,” he said.

“Zoomo is simply better for all stakeholders. E-bikes are just the beginning in Zoomo’s vision towards powering the future of logistics.

Nada said the rapid (sub 30 min) delivery market is growing at an exponential rate globally, delivering a significant positive tailwind for Zoomo.

The extra $38 million is for further investment in core technologies, including new vehicle products and next-generation software, as well as expansion into new cities and countries.