The rapid delivery market continues to grow at an exponential rate globally, with consumer expectations for delivery shortening by the minute.
According to Allied Market Research, the global Express Delivery industry generated $262.8B in 2020 and is anticipated to generate $484.3B by 2030, witnessing a CAGR of 6.4% from 2021 to 2030.
Zoomo, a Sydney headquartered delivery company, is capitalising on this space to disrupt the logistics space and transition every urban delivery mile to light electric vehicles (LEVs)
To step up its efforts, Zoomo has raised $20M funding in Series B round, bringing the total funding raised to date to $100M, a combination of both equity and debt.
New York-based VC Collaborative Fund led the round as a new investor with participation from strategic investors, including the VC arm of Mitsubishi UFJ, SG Fleet, WIND Ventures, and Akuna Capital.
How will the funding be used?
The Australian company will use the funds to further develop core technologies, including new vehicle products and next-generation software. The investment will also help accelerate Zoomo’s expansion into new cities and countries.
Mina Nada, Co-Founder, and CEO at Zoomo says “2021 was a transformative year for Zoomo, as we saw enterprises and fleet managers, in addition to gig-workers, benefit from our innovative platform. 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.”
Disrupting urban delivery mile
Founded by Mina Nada and Michael Johnson in 2017, Zoomo builds and provides electric bikes through a monthly subscription service to last-mile delivery riders. It’s on a mission to transition to net-zero by converting every urban delivery mile to light-electric vehicles.
The company’s vertically integrated platform encompasses custom delivery-oriented e-bikes, a physical servicing, and maintenance network, a software platform for asset management and telematics, and a finance offer.
Since its inception, Zoomo has expanded its operational presence to 16 cities in 6 countries globally. Zoomo currently operates in Australia, the United States, the United Kingdom, and Europe.
In 2021, Zoomo grew 4X globally and launched in 3 new countries. The company’s enterprise business also grew 20X globally.
Currently, Zoomo vehicles are used by major players in the on-demand food and grocery delivery segment including UberEats, Doordash, JustEat Takeaway, Deliveroo, Domino’s, Pizza Hut, Gopuff, Gorillas, Getir, JOKR, Zapp, Weezy, Dija, Milkrun, Cajoo and more.
With over $500M in Assets Under Management (AUM), Collaborative Fund is an investment fund that provides funding to companies based on creativity and collaborative consumption.
Craig Shapiro, Founder and Managing Director at Collaborative Fund, says: “We’re thrilled to be partnering with the Zoomo team. Delivering small packages and meals in a four thousand pound vehicle is inefficient and costly – both for customers and the environment. Zoomo is simply better for all stakeholders. E-bikes are just the beginning of Zoomo’s vision towards powering the future of logistics. We can’t wait to see more Zoomo vehicles in the cities all around us.”