VOI, an electric scooter sharing company, broke even and raised $30 million to expand its business
Sweden's VOI Technologies said on Thursday that it expected to make an annual profit in 2021 after breaking even in June, the first major electric scooter sharing company to do so.
Launched in 2018, VOI was hit by blockades to contain the COVID-19 pandemic, but demand is now picking up as riders are able to keep their distance and avoid crowding.
Chief Financial Officer Mathias Hermansson told Reuters that rivals including Tier, Lime and Bird would also raise $30 million to expand into new markets, including the United Kingdom.
After the new round, the company would be valued at just under $270 million, he added.
"Every week now we're seeing increases in almost every city," Hermanson told Reuters.
Since 2018, new and new funding from existing investors led by VNV Global brings the Swedish company's total capital to $165 million.
VOI, which operates in 40 cities in 11 countries, is aiming for its first full-year profit in 2021, while Hermansson expects this year's loss to be "significantly lower" than the SKr770 million ($85 million) reported in 2019.
He added that the company planned to increase revenue this year after it grew nearly 50-fold to 317 million kronor in 2019.Hermanson said the company is looking at many new cities where it could expand, including New York.