Zoomo raises $60m for e-bike subscriptions

Zoomo, Australian an e-bike manufacturer that leases its machines to q-commerce and restaurant delivery riders has raised $60 million in Series B funding. The money is to be used to transform the way its client companies look at last mile delivery.

The e-bike subscription company makes tough, long range e-bikes that can do many hours of riding per charge and in all weather conditions.

“We really see ourselves disrupting Rivian,” Mina Nada, CEO and co-founder of Zoomo, referring to the startup US EV van manufacturers recently valued at $90 billion. “We think that it doesn’t make sense for 90% of deliveries in the United States of two kilogram burgers to be done in two-ton vehicles. And we really think that that’s going to change fundamentally to being Zoomo vehicles in the future.”

$30 million of the funding is in equity from Grok Ventures, Skip Capital and ArcTern Ventures, and supported by AirTree Ventures, Clean Energy Finance Corporation, Contrarian Ventures and Maniv Mobility. This is to be invested in software and a servicing network. Meanwhile the other $30m comes from asset-backed debt from Viola Group. This money is to scale up into new markets. Currently Zoomo operates in the US, UK, Australia and Europe, but seeks to grow into new cities in those markets.

“People are realising we can’t hit zero emissions by continuing to just electrify vehicles, and right-sizing the form factor is a win for everybody,” said Nada. “It’s more efficient, there are faster food deliveries with less congestion. Couriers can make more money because they can do more deliveries per hour, and customers are happier because the deliveries come more quickly. We really see micromobility disrupting the traditional four-wheeled space, and we are heavily focused right now on the fact that no micromobility company is doing a really good job for the logistics space, even though there’s some cool companies doing a good job in the consumer space.”

“Safety is a really big feature for them, so is durability,” continued Nada, whose pedigree includes Deliveroo, Bain and Mobike. “We’ve got customers doing 50,000 kilometers per annum on a bike, so the requirements for delivery are really quite different to the consumer space.”