On Tuesday, Zoomo, a startup that designs and sells commercial grade e-bikes for online deliveries said, it had raised an additional $20 million in its latest funding round to fund its European expansion and grow its software and engineering teams.
The Series B funding round of the Sydney, Australia-based startup brings the total fund it has raised to $80 million and its total financing to around $100 million.
The latest investment round was led by venture capital firm Collaborative Fund and trading firm Akuna Capital.
Zoomo designs electric bikes for gig workers delivering food and groceries for a monthly fee, or to large fleets providing bikes to employees. Its major customers include Uber Eats, DoorDash, and Just Eat Takeaway.com NV.
Its subscription services start at $54 (40 pounds) a week in the United Kingdom and $20 in the United States for heavy usage of up 31,069 miles (50,000 km) per year.
In 2021, Zoomo expanded its footprint in select cities in Germany, France and Spain. It now plans further rapid growth.
“We’re ready to really scale up aggressively across Europe,” said Chief Executive Officer Mina Nada.
“Zoomo is also expanding its software and hardware teams to develop new software for customers and work on new bike forms and accessories to carry more weight,” said Nada.
He went on to add, “Our customers want to increase their order size in dollars and for us that literally means larger load sizes”.
“We know FedEx, UPS and Amazon are racking up millions of dollars in parking fines for double parking in Manhattan,” said Nada. “They’re all itching to shift as much of their fleet onto smaller form factors that are greener, faster and more affordable.”
($1 = 0.7353 pounds)