European micromobility startups are having their best year yet.
In Europe, VC investment in 2021 is at €1.2 billion, a 56% increase year-on-year, with increasing international interest in rounds. 53% of 2021's capital comes from US-based investors, double last year's 28%.
There are 147 micromobility startups and scaleups in Europe, worth a collective €10 billion. These European companies make up roughly a third of micromobility value created globally. On Monday this week, Tier Mobility announced $200 million Series D at $2.0 billion valuation, becoming one of the most valuable micromobility services worldwide. This is the second-largest micromobility deal in Europe this year. Following Monday's round, Mathias Ockenfels, General Partner at Speedinvest, commented that "the main reasons why Europe is leading the way of the global micromobility market are: better infrastructure (bicycle lanes etc.), more capital-efficient and long-term sustainable players, high environmental consciousness of EU citizens, friendly and collaborative approach to work with cities & authorities...". He also added that there is "high degree of innovation, especially to further optimize both security & unit economics".
International micromobility operators are also looking to expand into Europe through acquisitions. Two weeks ago, GoTo Global, an Israeli mobility company, acquired Emmy, a scooter-sharing company based in Germany. In April, US-based Helbiz acquired Mimoto, an Italian electric scooter sharing company. More consolidation is likely on the way, but it would take several years to play out (as it did with food delivery).
🇮🇩 GoTo Group (different from GoTo Global), the merged entity of Indonesia's largest marketplaces Tokopedia and GoJek, raised $1.5 billion at $28.5 billion valuation. This is the second-largest marketplace deal in South-East Asia ever. Grab's $2.0 billion Series G comes first. GoTo Group, which offers food delivery, ride-hailing, ecommerce and financial services, is a so-called "super app". We've curated a landscape containing 53 global super apps.
🇺🇸 GO, a car subscription service in the US, raised $41 million to make getting a car a simple and hassle-free experience. With the emergence of ride-hailing companies such as Uber and Lyft, car ownership (especially among Gen Z and millennials) has been declining. That changed in 2020 as the Covid-19 pandemic swept the world and consumers sought pathogen-safe commuting options. There are 10 other startups working on car subscription and new ownership models in this interactive landscape.
🇨🇴 Foodology, a Colombia-based virtual restaurant company, raised $15 million Series A to scale across Latin America. It currently operates 20 kitchens in Colombia and 10 in Mexico. In Latin America, consumer food service is a $200 billion industry. Although the US is a much larger market, demand for food delivery in Colombia and Brazil is larger according to Euromonitor. There are already well-capitalized and established players like Rappi and iFood in operation. However, LatAm food delivery startups, other than Rappi and iFood, have received €280 million in 2021 alone.
Other notable marketplace deals from the last week:
🇺🇸 Mojito, an NFT studio and marketplace operator, raised a $20 million Seed round at $100 million valuation.
🇺🇸 The SMBx, a marketplace for investing US local businesses through bonds, convertibles and other financial securities, raised $11.5 million Seed round.
🇺🇸 DiRx, a digital pharmacy for low-cost and generic drugs, raised $5.8 Series A. The startup was launched last year and is in a very competitive category (See "Pharmacies" in this interactive landscape).
🇺🇸 Rent the Runway, a clothes renting platform based in New York, has begun its IPO roadshow. The company will trade on NASDAQ under the ticker symbol “RENT.” Rent the Runway is part of the 180+ startups in the sustainable fashion landscape by my colleague Matteo.
🇩🇪 The European bus service provider FlixBusannounced the acquisition of Greyhound Lines, a household name bus service provider in the US, for $172 million. This is a major step forward to expand FlixBus' presence in the US.
🛍 Instagram to let influencers create their own stores via WWD.
👟 Allbirds targets a more than $2 billion valuation in upcoming IPO via CNBC.
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Tip of the week
Have you wondered how much Y Combinator's portfolio companies which are marketplaces have collectively raised? In 2021 year-to-date collectively fundraising stands at €4.9 billion, more than double the amount in 2020. Click on each of the bar charts to explore funding rounds by year.
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