Swedish micromobility operator Voi has raised $25m in an oversubscribed financing round and has secured additional debt financing for its vehicles.

The addition of equity and debt funds will be used to grow Voi’s e-scooter and e-bike fleet, seizing the opportunity presented by growing consumer demand and the rapid consolidation in the industry.

The financing round follows a strong 2023 for Voi, with a record-breaking number of more than 68 million rides. During the year, the company won tenders in prominent European cities such as London, Vienna, Oslo, Milan and Marseille, which it says cements its position as the most trusted micromobility operator across the continent.

“We had a strong 2023 where we continued to grow alongside improving margins on all levels,” said Fredrik Hjelm, CEO of Voi. “Over the past two years, our revenue has grown by nearly 50%, our gross profit has more than doubled, and we’ve reduced overhead costs by almost 50%. In 2023, we achieved our first quarter of positive EBIT at the group level, and we remain focused on our commitment to achieving full profitability and positive cash flow. We’ve seen remarkable efficiency gains and have a suite of products and operational processes ready for rollout to further accelerate that progress. Looking ahead, we see numerous promising opportunities as cities pivot from being car-centric to driving sustainable mobility, and consumers increasingly integrating micromobility into their daily routines. We are just getting started.”

Voi says it will intensify its commitment to working towards its sustainability goals, including further improving its environmental impact, working with cities to increase sustainable mobility options, ensuring safety for its riders and other road users, and continuing to be a responsible operator in terms of workplace practices.

With the financing, Voi (www.voi.com) will expand its fleet in existing and new markets with its third-generation e-bikes and seventh-generation e-scooters during spring 2024.

“We are very pleased with the continued confidence in Voi shown in this financing round,” said Hjelm. “With this, we will advance our mission to provide safe, sustainable and reliable micromobility for everyone. There is no doubt that micromobility is here to stay, and we will work closely with cities all over Europe to be the go-to micromobility operator. The micromobility industry is developing quickly with a maturing regulatory environment and improving margins, and the demand for our services continues to grow. That is a strong base to build an exceptional company, and we are committed to long-term collaboration with cities and public transport providers to realise our vision of cities made for living. Amid the rapid consolidation in the European market, this financing puts us in a great place to expand.”

Existing shareholders, including VNV Global, Raine Group, Nineyards Equity, Balderton, Creandum, Project A, Stena, Black Ice Capital, founders and employees, participated in the round. And approximately $85m of convertible loan notes from 2021 have been converted to equity, further solidifying Voi’s financial position.

“We’ve been proud partners with Voi from the very beginning, and we continue to be impressed by the team’s exceptional execution,” said Per Brilioth, CEO of VNV Global (vnv.global). “Over the past few years, the team has transitioned from hypergrowth to sustainable growth, demonstrating industry-leading efficiency and a remarkable track record with both riders and cities. Voi continues to spearhead the transformation of mobility across Europe, and we’re excited to participate in this funding that will take Voi to profitability. We look forward to continue supporting Fredrik and the team.”

Jason Schretter, head of Emea for the Raine Group (raine.com), added: “Accelerating consumer and government adoption of micromobility is creating solutions to congestion and pollution problems throughout Europe. Voi’s unwavering commitment to creating an exceptional and safe user experience while forging collaborative partnerships with cities has established the company as a clear industry leader. We are excited to participate further in Voi’s journey as the team’s operating scale and efficiency capture the promise of the sector.”