- The equity raise was led by climate-action focused Australian VC Grok Ventures and positions Zoomo as the leader in the provision of e-bikes for delivery use
- Skip Capital and ArcTern Ventures also join the Series B funding round
- The round is supported by a world-first asset backed debt facility from Viola Credit, a Global Credit Asset Manager focused on supporting technology companies
NEW YORK, Nov. 15, 2021 /PRNewswire/ -- Zoomo, the world leader for electric last mile delivery vehicles, today announced it has secured a USD $60 million capital raise led by Australian VC Grok Ventures, to accelerate its goal to transition every urban delivery mile to light electric vehicles (e-bikes, e-cargo, e-moped).
Zoomo is the only light electric vehicle company in the world that provides a one-stop shop of fleet management and delivery solutions, integrating vehicles, software, servicing and finance to provide an innovative end-to-end platform.
Grok Ventures led the equity raise as a new investor. Grok is the investment office of Atlassian Co-Founder Mike Cannon-Brookes and his wife Annie. Grok was joined by Skip Capital, the investment office of Atlassian's other Co-Founder Scott Farquhar, as well as global CleanTech investor, ArcTern Ventures. The Series B round was heavily oversubscribed and saw strong follow-on support from existing investors, AirTree Ventures, the Clean Energy Finance Corporation (CEFC), Contrarian Ventures and Maniv Mobility.
The round was also supported by a ground-breaking asset backed debt facility for e-bikes, built and provided by long term partners Viola Credit and OneVentures. Viola Credit is part of Viola Group, which is Israel's leading tech-focused investor with >$3 billion in assets under management. The debt facility will allow Zoomo to supercharge its customers' growth, by removing the need for upfront, lump-sum payments on bikes and instead allow them to pay a monthly subscription fee. The facility is highly scalable giving Zoomo room to rapidly grow its fleet.
Customers at the core
Zoomo will use the funds to expand its operations into new cities and countries, deepen software integration with its customers, and finalize development of Zoomo's next-generation vehicles.
This will mean an enhanced offering to the brand's existing and future customers, customers who have already expressed their appreciation for Zoomo's cutting-edge electric vehicle solutions.
Alberto Menolascina, General Manager UK at Gopuff said, "Our Zoomo e-bike fleet is critical to enabling our rapid grocery delivery promise. Not only have we found Zoomo the most advanced partner for enabling our vehicle scale-up, but the bikes are the favorites among our couriers as well."
Zane Zappacosta, Domino's Franchisee said, "At Domino's, our delivery service is fuelled by innovation, technology and a commitment to sustainability. By adopting Zoomo e-bikes we are committing to a more sustainable delivery fleet, one that reduces our environmental footprint while helping to drive internal efficiencies like lowering service costs and broadening our hiring pool."
Cleaner, greener path
The funding will strengthen Zoomo's goal of electrifying commercial delivery fleets, a critical step in meeting emissions reduction targets. As world leaders continue to explore paths to net zero emissions, light electric vehicles have emerged as a sustainable option that is disrupting the traditionally pollutive transportation sector.
Mike Cannon-Brookes, Principal at Grok Ventures said, "If we want to decarbonize our world, transportation needs to change. Zoomo is an incredible Aussie start-up taking this on. They're greening delivery and transforming logistics on a global scale."
The efficiency afforded by light and agile vehicles means the industry can fundamentally reimagine how mobility looks in major cities, particularly in regards to the rapidly growing delivery sector. Zoomo is enabling the next wave of on-demand delivery while reducing city congestion.
"As countries all around the world grapple with achieving net-zero carbon emissions, they are realizing that electrifying cars is only part of the answer. We need more efficient and sustainable form factors - light EVs. Delivery companies are re-evaluating their fleet composition and are embracing the power of the pedal to marry cost efficiencies with environmental sustainability," said Mina Nada, Co-Founder & CEO at Zoomo.
"Today's funding round underscores the tremendous potential of Zoomo e-bikes for delivery use," adds Nada. "Zoomo is excited to bring on some world leading investors like Grok, ArcTern and Skip Capital to support our incredible growth and share in our vision to make e-bikes the default way of moving things around our cities."
Ido Vigdor, General Partner at Viola Credit said, "We are delighted to deepen our partnership with Zoomo on this important mission of reducing carbon footprint globally and are keen to support their global fleet expansion as they enter their next phase of growth."
Ex-Deliveroo and Mobike executive Mina Nada and his former Bain colleague Michael Johnson took their side hustle full time in 2019 with a mission to turn the world's delivery fleets electric using e-bikes.
Zoomo is a full-service micromobility platform for delivery. Zoomo's vertically integrated platform encompasses custom delivery-oriented e-bikes, plus a servicing and maintenance network, a software platform for asset management and telematics and finance offerings. Zoomo currently operates in Australia, the United States, the United Kingdom and Europe.
About Grok Ventures
Grok Ventures is the investment office of Mike and Annie Cannon-Brookes. Grok invests in high growth, tech enabled businesses solving some of the biggest challenges in decarbonisation, focusing on energy, transport and food. It is based in Sydney, Australia, but invests globally, across stages and asset classes.