Bolt Bikes, the e-bike manufacturer that’s focused on the delivery market and led by a former Deliveroo exec, announced it landed an eight-figure investment designed to help it expand operations in the United States, while also moving into new categories globally. Along with the capital raise, the Australia-based startup is also rebranding with a new name, Zoomo.
The Australian Clean Energy Finance Corporation (CEFC) led the capital raise with a $5 million USD equity investment. Equity investment from Hana Ventures and existing investors Maniv Mobility and Contrarian Ventures, together with venture debt from OneVentures and Viola Credit, completed the capital raise.
Zoomo will use the capital to launch a flagship brick-and-mortar operation in Los Angeles and expand its New York footprint to include services across the entire city. The startup is also expanding into new categories, such as parcel, mail and grocery deliveries. Zoomo also has operations in the United Kingdom and Australia.
“The U.S. market is critical for Zoomo’s growth, and the investment will allow us to expand our product lineup and physical presence in the country,” said Mina Nada, CEO and Zoomo co-founder. “We’re committed to growing our operations to new American cities and states as quickly as possible.”
Since its U.S. launch in 2019, Zoomo has grown exponentially and provided sustainable transportation for thousands of American gig workers through partnerships with companies such as Uber Eats, DoorDash and Postmates.
Ido Vigdor, general partner at Viola Credit, said: “Last-mile delivery has been growing immensely and we believe it will continue to do so. Mina and the team have done an excellent job producing a compelling offering in the market and building strong brand recognition, which is why we at Viola Credit and OneVentures are delighted to join this round and provide the credit funding that will support their effort to scale internationally.”
In general, e-bikes are much more efficient than full-size automobiles, which are still the wheels under the majority of U.S. meal deliveries. As Food On Demand covered in a recent story on the brand formerly known as Bolt, the company was expressly designed to avoid the pitfalls, regulatory hurdles and economic barriers keeping third-party delivery drivers dependent on the automobile.
Zoomo’s business model also allows couriers to rent e-bikes weekly or to own them outright.
“Zoomo is differentiated by our vertically integrated approach. We offer smart utility bikes through a physical network of service centers and world-class software for a very affordable price,” said Nada.
Zoomo calculates that it has already enabled its courier customers to make over 2 million deliveries globally, abating the equivalent of almost 3,000 tons of CO2 since 2017.
“We believe that the bike world is ready for disruption and that in five to 10 years, light electric vehicles will be the predominant form of transportation,” Nada added. “Zoomo is taking the lead in this transformation.”