Stockholm-based Voi Technology, a micro-mobility company, announced that it raised €50M by selling bonds as part of a plan to raise €125M in total.
The bonds have a four-year term with interest based on Euribor (Euro Interbank Offered Rate) plus 6.75 per cent. The oversubscribed bond offering had demand from known Nordic and international investors.
The funds will be used to expand Voi’s fleet of 110,000 e-scooters and e-bikes, refinance existing debt, and support general corporate activities.
The bond issuance comes after a “strong performance” year for Voi, meeting profitability targets and reducing costs. Organisational changes made in February 2024 have cut the company’s central costs by nearly 50 per cent since mid-2022.
Voi expects 2024 to be another record year for rides, revenue, and profits.
Mathias Hermansson, CFO and Deputy CEO at Voi, says, “The successful bond issuance reflects a strong vote of confidence from professional investors in Voi’s ongoing initiatives and strategic direction, as well as robust support for the company’s continued expansion.”
Investing in next-generation vehicles
Voi claims to have reduced its central costs by nearly 50 per cent since mid-2022 and improved its vehicle profit margins by increasing cost efficiency for each ride.
This has been achieved through data-driven automation and investments in new vehicles, including Voi’s 7th-generation e-scooter and 3rd-generation e-bike, which enhance rider experience and economics.
The funds from Voi’s bond issuance will primarily be used to expand its fleet with these new vehicles in 2025, which are expected further to improve energy use, durability, and profitability.
Fredrik Hjelm, co-founder and CEO at Voi, says, “This is a big day for the industry. We are proving that we can turn this into a profitable business model at scale and, by accessing capital that has previously been unavailable to micromobility operators, we have made a giant leap forward for the industry in general and Voi in particular.”
“The hard work and difficult decisions we have made are paying off. Looking forward, our focus will continue to be on scaling our fleet in both new and existing markets and continuing to support cities in reaching their climate and traffic targets.”
“Voi’s mission remains the same, we want to change how people get around for good and move cities away from the car-biased culture of the 20th century,” adds Hjelm.
The company will apply to have the Bonds traded on the corporate bond list of Nasdaq Stockholm.
Brief about Voi Technology
Founded in 2018 by Adam Jafer, Douglas Stark, Fredrik Hjelm, and Keith Richman, Voi Technology focuses on sustainable transportation and urban development through hardware and software solutions.
The company offers shared electric vehicles, such as e-scooters and e-bikes, which help reduce air and noise pollution while easing traffic congestion in European cities.
For riders, Voi provides vehicle access via the Voi app, allowing users to locate nearby e-scooters or e-bikes, unlock them by scanning a QR code, and navigate through the city.
The company also collaborates with city officials and organisations to address local transportation needs. It operates the largest number of scooters in licensed programs across Europe.
Additionally, Voi enhances public transport systems by extending their reach without requiring significant infrastructure investments. Its framework uses standard APIs to integrate with public transport and Mobility as a Service (MaaS) applications.
Voi envisions cities designed for people, free from noise and pollution, and aims to improve urban living by making sustainable transportation options more accessible, ultimately contributing to climate change efforts.
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