(Bloomberg) -- SoftBank Group Corp.'s second Vision Fund is leading a $250 million investment in German e-scooter rental startup Tier Mobility, one of the biggest rivals to U.S. giants Bird Rides Inc. and Lime.
Tier will use the money to roll out to more cities in Europe and grow its network of charging stations, the Berlin-based company said Tuesday. The firm said it's also in the process of securing a debt facility to finance an expansion of its vehicle fleet.
E-scooter firms are hoping that demand for emissions-free city transport and easing regulations in Europe are bolstering the emerging micro-mobility industry after the coronavirus pandemic eases.
The backing for Tier comes amid tough times for Bird and Lime, which have run into trouble this year as their business models were strained by the pandemic that kept customers stuck at home. Both had to drastically reduce their fleets, cut hundreds of jobs and sought emergency funding, in a blow to venture capitalists who invested more than $1 billion in the companies.
Tier says it's profitable after building a fleet of about 60,000 e-scooters in 80 European cities. Existing investors including Northzone, RTP Global, White Star Capital and one of Abu Dhabi's sovereign wealth vehicles also participated in the funding round, the Financial Times reported earlier.
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