Tier Mobility raises $250 million to expand
The Berlin-based micromobility provider Tier Mobility has announced the closing of a new financing round in the amount of 250 million US dollars (about 211 million euros). The Series C round, the third capital increase of this kind, was led by SoftBank Vision Fund 2.
Tier intends to use the financing primarily to expand its presence in European cities, to accelerate its expansion into strategic growth markets and to launch the Tier Energy Network across Europe.
In addition to the SoftBank Vision Fund 2, the existing investor Mubadala Capital is also pumping funds in the double-digit million range into the Berlin startup. Also participating in the current financing round are the existing investors Northzone, Goodwater Capital, White Star Capital, Novator and RTP Global. At the same time, Tier is in the process of securing a credit line to finance the fleet expansion.
According to the German outlet Manager Magazin, the Softbank Vision Fund 2 is an investor who should be treated with scepticism. The fund is backed by Masayoshi Son, the richest man in Japan, who is known for “dizzyingly high investments that fueled the growth of his portfolio companies, which then often suffered a deep fall”. The trade magazine cites coworking provider WeWork as a prominent example.
Either way, since the start of its business activities in October 2018, Tier says it has put 60,000 electric scooters on the streets in over 80 cities in ten countries. The company is already profitable and will use the investment sum to advance its entrepreneurial vision further. In Germany, Tier also set up electric mopeds in Berlin, Munich and Cologne in May to complement its electric scooters. The Berlin company also launched a B2B platform that gives companies easy access to the electric scooter range and is now available in more than 40 German cities.
The latest major project is the nationwide introduction of what is called the Tier Energy Network, which will install thousands of charging stations in cities throughout Europe. “Our vision is a completely new way of how we will move in cities in the future: all-electric, shared and affordable, and with different vehicles powered by one energy network. Together with, city and national government, we will build the best solutions to ensure safe, highly efficient, and sustainable movement from A to B,” says co-founder and CEO Lawrence Leuschner. Together with city and national authorities, he said, the best solutions will be developed to ensure safe, highly efficient and sustainable movement from A to B. The aim is to integrate different types of electric vehicles in the future.
With reporting by Cora Werwitzke.