Backed by SoftBank, micro-mobility operator Tier raises $200m in funding
Tier, a micro-mobility company based in Berlin and backed by the SoftBank Group, completed the first close of its $200 million Series D funding round.
SoftBank’s Vision Fund 2 and other existing investors – Abu Dhabi’s Mubadala Capital, Northzone of London and investment company White Star Capital from New York – participated in the round, the company said yesterday.
New partners such as M&G Investments, a green impact fund, and Mountain Partners, a global investment holding company, also took part.
With a $2 billion valuation, Tier has raised $660m in equity and debt funding so far. This funding round is part of a broader equity and debt raising.
“The funding provides Tier with additional resources to fulfil our mission to Change Mobility For Good,” said Lawrence Leuschner, chief executive and co-founder of Tier Mobility.
“Clocking more than 80 million trips [and] replacing over 13 million car rides in such a short amount of time exemplifies that cities around the world look for ways to make their transport networks safer and move towards a zero-emission future.”
The global electric scooters market size is expected to grow 7.7 per cent at a compounded annual rate to about $42bn by 2030, according to a study by Grand View Research.
Demand for e-scooters has helped the industry’s biggest players, such as Bird and Lime, achieve multibillion-dollar valuations in less than two years.
Co-founded in 2018 by Mr Leuschner, Matthias Laug and Julian Blessin, Tier is a shared micro-mobility provider offering a range of light electric vehicles, from e-scooters to e-bikes and e-mopeds, that are powered by a proprietary energy network.
The German company has 135,000 e-scooters, e-bikes and e-mopeds spread across 150 cities in 16 countries in Europe and the Middle East.
“This equity funding provides further firepower to scale our multi-modal market presence globally and pursue strategic investments and acquisitions,” said Alex Gayer, chief financial officer at Tier Mobility.
“Our vehicle capex needs will be serviced with the debt capacity unlocked. Our goal is to build Tier into the European micro-mobility powerhouse, building on our current position as the No 1 player in the shared electric scooters market.”
Tier plans to use the funds for acquisitions and strategic investments, while expanding its international coverage across growth markets. In the GCC, the company operates in the UAE, Qatar and Bahrain in the Gulf.
Tier will also use the funds to further invest in extending its multimodal fleet across Europe and the Middle East and continue to expand its Tier Energy Network, a network of battery charging stations hosted by local businesses, it said. The company had previously raised $60m in asset-backed financing from Goldman Sachs in June. This came after a $250m Series C funding round led by SoftBank’s Vision Fund 2 in November.
“Lawrence, Matthias and Alex’s passion for change can be felt across the organisation – from Tier’s hub in Dubai to their headquarters in Berlin,” said Amer Alaily, director at Mubadala Capital’s Ventures business in Europe.
“They have quickly emerged as not only a leader in the European micro-mobility space but also one whose commitment to sustainability sets them apart from their competitors.”
The Middle East has become a hotbed for international companies looking to expand their operations as funding for technology-enabled offerings picks up in the region.
Livspace, a Singapore home interior and renovation company, said it is expanding into the Middle East in a $50m joint venture with Alsulaiman Group, Ikea’s operating partner in the region.
The Middle East has become a hotbed for international companies looking to expand their operations