During the pandemic, e-scooters swelled in popularity, capturing the attention of investors eager to fund innovative mobility solutions. Brands like Bird Mobility, Tier, Dott, and Voi saw significant interest, as cities around the world adapted to socially distanced travel needs.
However, as the pandemic waned, people returned to roads and other modes of transportation, leading to a shift in the e-scooter market. Many European countries began implementing bans or restrictions on e-scooter usage, citing concerns about safety and public space management. Authorities described these services as “highly divisive,” with some communities expressing frustration over e-scooter clutter and rider behaviour.
For instance, cities like Paris and Berlin have wrestled with the impact of e-scooter rentals, introducing measures to regulate their use, including designated parking zones and operational limits. As a result, the enthusiasm for e-scooter startups has dimmed, prompting a reevaluation of their business models and sustainability in the post-pandemic landscape.
With the changing dynamics of the e-scooter market and the challenges facing companies like Voi are still coming out with ways to survive and now the Swedish micromobility operator has completed its first-ever bond issuance, placing €50 million of senior secured bonds under a total framework of €125 million. The bonds carry a four-year tenor and a floating rate interest of 3 months Euribor plus 6.75% per annum.
It received strong demand from large Nordic and international institutional investors and the Bond Issue was oversubscribed, highlighting the strong investor confidence in Voi’s expansion strategy. It will also leave an impact on the current and future financial profile of the company and the future of the micromobility industry.
Earlier this year, Voi announced it had secured $25 million through a mix of equity and debt from its existing investors. According to Dealroom, the company has raised a total of $491 million to date. Although Voi lost its unicorn status in 2023, it managed to regain a valuation of $1 billion in 2024.
Fleet expansion plans
The proceeds from Voi’s bond issuance will mainly be used to scale Voi’s fleet with the next-generation e-scooters and e-bikes in 2025. Voi expects that the next generation will generate even further improvements in energy consumption, durability and unit economics. it will also focus on refinance existing debt, and channel the proceeds for the general corporate purposes of the group.
Is the future bright for Voi?
Due to the challenges of the market, not all micromobility startups have succeeded. The Berlin-based e-scooter company unu and the American giant Bird both declared bankruptcy last year, while Voi’s competitors, Dott and Tier, opted to merge after facing difficulties in achieving profitability.
Similar to its rivals, Voi experienced a downturn since 2021. However, according to their recent press release, Voi has managed to increase its vehicle gross profit margin significantly, aided by a nearly 50% reduction in central costs since mid-2022. This improvement is attributed to increased cost efficiency per ride across all categories.
The company credits these advancements to data-driven automation resulting from investments in new vehicles launched in 2024, including Voi’s seventh-generation e-scooter and third-generation e-bike. These new models have contributed to notable enhancements in both the rider experience and the overall unit economics.
Fredrik Hjelm, co-founder and CEO at Voi, said: “This is a big day for the industry. We are proving that we can turn this into a profitable business model at scale and, by accessing capital that has previously been unavailable to micromobility operators, we have made a giant leap forward for the industry in general and Voi in particular. The hard work and difficult decisions we have made are paying off. Looking forward, our focus will continue to be on scaling our fleet in both new and existing markets, and continuing to support cities in reaching their climate and traffic targets. Voi’s mission remains the same, we want to change how people get around for good and move cities away from the car-biased culture of the 20th century.”
Enhances net-zero transition
Founded by Fredrik Hjelm, Adam Jafer, Douglas Stark and Filip Lindvall in 2018, the micromobility platform offers e-scooter sharing in partnership with cities and local communities. It believes that scooters can play a central role in changing how people move in our cities in the future.
There is immense pressure to transform transport operations and cut the reliance on polluting private vehicles to meet their own net-zero emissions targets. E-scooters, e-bikes and other forms of micro-mobility are the best choice for cities that want a sustainable, shared vehicle that integrates easily with public transport, reduces reliance on private cars, relieves congestion and cuts pollution.
Mathias Hermansson, CFO and Deputy CEO at Voi, said: “The successful bond issuance reflects a strong vote of confidence from professional investors in Voi’s ongoing initiatives and strategic direction, as well as robust support for the company’s continued expansion.”
Apart from Voi, recently Pure Electric, the London-based e-scooter and green mobility business owned by Father of F1 superstar Lando Norris and former Hargreaves Lansdown director – Adam Norris, also surpassed its crowdfunding target by more than 227%,
The raise is part of a wider raise in which the company had previously secured more than £4million from high-net worth individuals, further bolstering the company’s war chest of £70m investment to date – £60m of which came directly from Adam Norris himself.
Further, another London-based e-mobility startup, Golden Ride, the high-tech electric micro-mobility brand from globally renowned sustainable mobility pioneer Terravision Electric, has launched an all-new state-of-the-art eScooter in the UK.
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