Voi Achieves Profitability in June and Secures $30M in Funding

Voi profit

writer icon Laura Jensen     Voi   |   Tech     🕐 22. Jul. 2020

The Swedish Voi Technology announced that it has reached its first-ever monthly profit at group level for the month of June, less than two years since it launched the e-scooter service which now operates across 40 cities and 11 countries.

Double-digit EBITDA Margin
Voi revealed that in June 2020 it achieved a double-digit EBITDA margin (Earnings Before Interest, Taxes, Depreciation, and Amortisation), marking a strong return to Europe’s streets for the European electric micro-mobility provider after months of disruption due to the coronavirus pandemic.

Voi's Rapid Growth
The margin was achieved on sales in June that were remarkably close to sales seen in June 2019, indicating that scooter riders are returning in number to this personal mode of travel that allows people to keep socially distant and avoid crowds.

Full-year figures for 2019 show that Voi’s revenues accelerated by almost fifty-fold during its first full year of operation, reaching SEK 317m. At the same time, Voi’s employee numbers rose from 31 at the end of 2018 to 409 at the end of 2019.

The rapid growth of the company has been supported by investments from committed shareholders, allowing Voi to launch successfully in all of Europe’s biggest e-scooter markets including Germany, France, Switzerland, Austria, Italy and Scandinavia. Following the last capital raise in November 2019, Voi focused firmly on strong unit economics and achieving operational excellence.

Fourth Generation Scooter
At the centre of its strategy was the decision to invest in the fourth generation proprietary scooter, Voiager V3X, designed in-house.

The roll-out of the new scooter, with a swappable battery, has been a game changer for the company, driving a more than 50 percent reduction in lower daily charging, logistics and repair costs per scooter. Meanwhile, the company increased its investments to become the most efficient micro-mobility operator in the world through data-driven analytics and machine learning capabilities.

Another initiative saw the company launch a resale programme for refurbished scooters, facilitating the efficient recycling of capital in line with its sustainability targets. To date over 10 000 scooters have been sold.

Regulatory Improvement
Voi has also seen a paradigm shift in the operating environment. Following the COVID-19 lock-downs, the regulatory environment in many countries has improved significantly and decision makers are embracing new modes of transportation. Consumer behaviour is also changing, accelerating the use of multiple modes of transportation around cities.

England Next?
On the back of Voi’s strong financial performance and the renewed appetite from policymakers for new forms of transport to relieve capacity constraints on public transport, Voi’s main shareholders are supporting the company to invest further in these new opportunities, including the opening of the UK market, potentially Europe’s biggest yet.

The company has signed a funding agreement with existing and new shareholders which will raise up to $30 million. VNV Global Ltd. led the round accompanied by more than 20 existing shareholders. In addition, a select number of new shareholders were also invited to participate.

The additional funds raised will be used to enable expansion into new markets, including the UK and to focus even further on efficiency-enhancing initiatives. The company continues to target 2021 as its first full year of profitability.

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