The company's CEO, Lawrence Leuschner, stated that these new funds would be invested in expanding the platform and developing their technology.
Tier was launched at the beginning of this year with a focus on micro-mobility and intends on adding other mobility options to its platform. However, the company hasn't said which mobility options that'll include or when those additional options will be added. Until those new mobility options are added the company will focus on updating its fleet to help cut costs and increase the longevity of their current slate of scooters.
This funding round was led by Goodwater Capital and Mubadala Capital, the latter of which is Abu Dhabi's state fund which is the only non-European market that Tier currently operates in.
“We firmly believe that micro-mobility as a form of transportation is here to stay, especially in Europe,” said Amer Alaily from Mubadala Capital in a statement. “We are confident that Tier Mobility is best positioned to become the leading player in Europe and globally. We are excited and look forward to building a global category-leading company out of Europe.”
Other investors include Evli Growth Partners, White Star Capital, Point9, Kibo Ventures, Axa Germany, Indico, Speedinvest, Northzone, Market One Capital, and Nico Rosberg the Formula 1 champion.
Currently, the market for scooter mobility platforms is pretty crowded, but Tier Mobility believes that have room to grow and plenty of chances for success.
Tier Mobility has found plenty of growth, facilitating over 10 million rides, and this latest round of funds brings their total to around $95 million. However, when compared to their major scooter competitors, Bird and Lime, the company is still hundreds of millions behind.
“With our Series A funding of €32 million, we built the fastest-growing mobility company,” Leuschner said. “We achieved that with a fraction of the capital of Bird and Lime. That shows how efficiently we are operating. With this round, we will now accelerate the growth based on our scalable infrastructure and positive unit economics.”
Within the scooter market, there are still several issues including governmental regulations and safety issues. Leuschner noted that the company has had about 250 accidents in the 10 million rides and most of the accidents were "minor."
“We continue to educate users, but I can’t see a significant safety issue compared to other vehicles,” he added. “I think Tier has taken a leadership role in safety with the safest scooter on the market, permanent education of our users and insurance for every driver in every city.”
With these safety issues, Tier is proud to have partnered with Axa, an insurance company, to help improve safety rules and to help develop new insurance policies for consumers.
“Tier Mobility is not only the fastest-growing mobility company in the world but one of the fastest-growing companies in consumer tech history,” noted Chi-Hua Chien, Goodwater Capital Co-Founder.
“With phenomenal execution, they have emerged as the leading micromobility provider in Europe on only a fraction of the invested capital of their competitors. This is a true testament to the uniquely capital efficient and profitable model the team chose to deploy from the outset. Tier’s unique approach to operations and partnerships yields superior unit economics and defensibility.”
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