A growing disruptor in the last-mile delivery space, Australian e-bike manufacturer Zoomo announced a $20 million addition to the series B funding round it completed in November, bringing the round’s total to $60 million and the company’s fundraising total to over $100 million.
Zoomo’s electric vehicles, which are geared toward last-mile delivery, are widely used by food and grocery delivery couriers for platforms like Uber Eats, DoorDash, Grubhub, Domino’s, Gopuff and Jokr. In December, the company released its flagship model, the Zoomo One, which it billed as “the ultimate delivery machine.”
“At Zoomo, we see a world within the next decade where every last-mile delivery will be completed on a light electric vehicle supported by the Zoomo ecosystem,” said co-founder and CEO Mina Nada. “Our investors will help bring us one step closer to making this a reality.”
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The investor responsible for leading the equity raise is Collaborative Fund, a New York City-based venture capital fund that’s also invested in Lyft. Additional participants included Australia’s SG Fleet and the venture capital arms of Japan’s Mitsubishi UFJ and Latin America’s COPEC. It’s the first time Zoomo has received contributions from strategic investors.
“We’re thrilled to be partnering with the Zoomo team,” said Craig Shapiro, founder and managing director at Collaborative Fund. “Delivering small packages and meals in a 4,000-pound vehicle is inefficient and costly — both for customers and the environment. Zoomo is simply better for all stakeholders.”
Zoomo’s goal is to accelerate the transition to net-zero emissions by replacing gas-guzzling last-mile vehicles with a light-electric alternative for urban deliveries. However, it sets itself apart further by offering its e-bikes as a weekly subscription –– gig workers typically pay $20 to $35 per week, which also covers servicing and support. The company also supplies e-bike fleets and fleet management software to larger clients like Domino’s.
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With the additional $20 million in funding, Zoomo plans to invest further in the core technologies driving its light-electric vehicles and software offerings. According to Nada, that includes building out an end-rider app. The funding will also help Zoomo expand beyond the 16 cities and six countries that it currently serves.
Zoomo added three of those countries in 2021, a year in which it also quadrupled its global revenue and grew its global enterprise business by 20 times.
“2021 was a transformative year for Zoomo, as we saw enterprises and fleet managers, in addition to gig workers, benefit from our innovative platform,” said Nada. “2022 is the year we take the business up a gear. The series B+ surplus funding will enable us to grow more aggressively across the globe, and ultimately put more efficient, safe and clean transport solutions on our roads.”
That starts with the recently unveiled Zoomo One, which has an assisted top speed of 28 mph and is longer-lasting than any previous model the company has produced. The new design will be available for purchase in the first half of 2022, starting at an estimated $4,000.
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