US-based Battery Ventures backs European fleet-management technology firms Vimcar and Avrios: Here’s why

US-based Battery Ventures, a technology-focused investment firm, announced on Thursday that it will lead a growth-equity investment in Berlin-based Vimcar and Zurich-based Avrios – two cloud-software companies that are serving the growing European fleet-management sector.

Both firms provide software that helps European businesses with car fleets,  as well as certain professionals, monitor their fleet operations, track their vehicles, control expenses, lower emissions, and comply with local rules and regulations.

In Europe, Vimcar and Avrios collectively employ over 250 people and provide services to thousands of clients in the construction, technical field services, healthcare, manufacturing, and government sectors.

Aim of the investments?

The funding comes at a time when companies have to deal with new regulations on mobile workers and are transitioning to electric vehicles (EVs) and carpooling in their fleets due to higher fuel costs and environmental concerns, among other things. Such factors are also becoming challenging for smaller firms to run in Europe cost-effectively as many of them still manage their fleets of cars and trucks using manual techniques.

Battery Ventures says these investments in Vimcar and Avrios will help customers adapt to a new regulatory landscape, EVs and higher fuel costs. The ultimate goal is to merge the two SaaS (software-as-a-service) businesses to become a pan-European player and provide clients with improved product capabilities and service through product innovation and acquisitions.

Morad Elhafed, a general partner at Battery Ventures, says, “More broadly, the combined investment also highlights Battery’s continuing enthusiasm for software firms serving large as well as small- and medium-sized businesses in specific, vertical industries, including in Germany, where these Mittelstand companies essentially form the backbone of the national economy.”

Founded in 1983, Battery Ventures collaborates with “exceptional” founders and management teams in a variety of industries, including software and services, corporate infrastructure, consumer technology, healthcare IT, industrial technology, and life science instruments. The firm backs companies at all stages, ranging from Seed and early to growth and buyout, and invests globally from offices in Boston, San Francisco, Menlo Park, New York, London, and Tel Aviv.

Brief about Vimcar and Avrios

Vimcar claims to be the leading provider of fleet management software for small and medium businesses with one to 200 vehicles. The company was founded in 2013 by Andreas Schneider, Christian Siewek and Lukas Weber.

The company’s SaaS solutions cover every aspect of fleet management – from real-time vehicle tracking to theft warning and route planning. The digital logbook system fulfils all legal requirements of financial authorities in the DACH area. Currently, Vimcar’s software is used by more than 60,000 clients, including Deutsche Bahn, Allianz, Free Now, Knauf, Koziol, and Nippon Seiki.

Vimcar co-founder, Christian Siewek, says, “Partnering with Battery and Avrios will allow us to serve more than 250,000 vehicles in the DACH region with a unique mix of telematics and software, creating a powerful, pan-European service.”

Avrios was founded in 2015 and is currently led by CEO Francine Gervazio. The company offers a cloud-based fleet management platform for fleets with 20 to 20,000 vehicles. The company’s ‘important’ functions include fully automated data collection, automatic compliance controlling, an environmental dashboard, real-time reporting, electronic driver’s licence control and corporate car-sharing software. 

Currently, Avrios counts more than 1,000 customers with around 120,000 vehicles and 140,000 drivers, including DB Schenker, Bayerisches Rotes Kreuz, Kyocera, Flaschenpost, and Tee Geschwendner.

CEO Francine Gervazio says, “The Battery team, including its European base in London, is incredibly knowledgeable about SaaS and has years of expertise helping businesses scale, so we look forward to working together. We’re also incredibly excited to join forces with Vimcar and, together, strengthen our position in the market.”