The first half of 2023 saw strong growth in the EV market, reflecting increasing EV popularity. As a result, we have seen companies such as Advanced Electric Machines, Revolv, and others that help boost the EV boom raise funding.
As per Canalys, Mainland China was by far the largest EV market, with 55% of global EV sales in the first half of this year, accounting for 3.4 million units. However, other markets have also witnessed a growth in EV usage.
Talking about Brazil, motorcycles, and mopeds are the fastest growing form of mobility in Brazil. In 2023, 1.2 million units were sold over the first nine months of the year, an increase of 20% over the same period last year. Revolutionising this segment, São Paulo-based eMobility startup Vammo has raised $30 million in equity and debt financing.
To open a production factory
The Series A investment was led by one of Brazil’s leading venture capital funds Monashees known for investing in Addi, JOKR, and Ualá. The round saw participation from Construct Capital, 2150, and Maniv Mobility. This follows the $8.5 million seed round raised last year in which Monashees also participated.
Vammo is set to open a production factory in Manaus, targeting a 50-fold customer base increase by 2025, becoming the dominant player across Latin America as soon as 2024. This factory will enable the assembling of motorcycles, cabinets and batteries locally in Brazil.
All-in-one EV rental service
Founded by Jack Sarvary, a former Rappi executive, and Billy Blaustein, a former Tesla executive in 2022, Vammo works with the mission to reduce carbon emissions and make mobility more accessible for all. With flexible leasing, its affordable motorcycle and battery rentals eliminate barriers for customers.
The company offers motorcycle riders a cleaner and cheaper alternative for getting around São Paulo quickly. It is possible as its business model involves an all-in-one rental service of electric motorcycles of various brands, including battery swapping and vehicle maintenance. It supplies electric motorcycles and a network of stations that allow users to exchange their discharged batteries for others ready for immediate use at a low weekly subscription cost.
Its battery-swapping bases are located at strategic points across the city to ensure convenience for Vammo’s customers. In just 10 months, customers have clocked up over 4 million kilometres and carried out more than 150,000 battery exchanges.
“We are very excited to continue supporting Vammo, a company we have gotten to know deeply over the last year. They have impressed us with the speed and quality of their progress. Vammo is undoubtedly the leader in terms of electrification in Latin America,” said Carlo Dupuzzo, Partner at Monashees.
The company plans to use the capital to expand operations in São Paulo and throughout Latin America. “Our aim is to develop the infrastructure to make electric mobility a reality in the region. We are excited to bring on investors who share our vision that two-wheeled vehicles will be the first to electrify in this part of the world and that Vammo is at the forefront of this transition,” added Jack Sarvary, Vammo’s CEO.
“We believe that, here in Brazil, this revolution in electric mobility will not happen from the top down, as happened in rich countries in Europe and the United States, with brands like Tesla. Here, it’s motorcycles, not cars, that will drive the transition to electric and transform the culture of mobility. Electric cars are still too expensive for the majority of the population, while our proposal offers a cheaper solution that can interest both millionaires and the low-income class,” said Billy Blaustein, Vammo’s COO. “What’s more, Brazil’s energy matrix is one of the most renewable in the world, with truly sustainable energy generation. In countries like this, we urgently need to electrify our fleets.”
