Electric bike and e-scooter sharing brand Lime has raised a huge $523million in funding during an oversubscribed investment round, as the company plans go carbon-free and revamp its fleet.
Lime received a significant boost in its funding thanks to investments from the Abu Dhabi Growth Fund, Fidelity Management and Research Company LLC, Uber, and some funds managed by Highbridge Capital Management LLC, along with a host of other existing and new investors.
The company scooped around $418million of convertible debt and a further $105million senior secured term loan facility from the private credit group UBC O’Connor, as it hopes to make changes in the next decade.
Along with plans to renew its fleet of 200,000 vehicles in Europe and the US, Lime also plans to be carbon free by 2030, with $20million of the new funding going towards sustainable hardware initiatives and developing a low carbon supply chain.
Lime CEO Wayne Ting said: “This oversubscribed round is testament to the strong business we’ve built and the overwhelming confidence we’ve received from the financial community.
“This investment will allow us to double down on our newest generation of e-bikes and e-scooters, as well as additional modes, to ensure people have reliable access to affordable, shared, carbon-free transportation.”
Based in San Francisco, California, Lime has expanded to cover 200 cities, including Paris, London and New York, hitting the 250million-ride milestone during the summer.
Lime plans to use the new capital to scale its next-generation Gen4 e-scooter and e-bikes, which are tougher and feature swept handlebars for added comfort, additional reflectors and swappable batteries between both vehicles.
Uber CEo Dara Khosrowshahi said: “Through the scale of its fleet, the efficiency of its operations and its ability to work with cities, Lime continues to prove that it is the global leader in micromobility,
“Everyone at Uber has been impressed by Lime’s ability to consistently improve its balance sheet, and we’re confident that this leadership team has the vision and ability to take Lime to new heights, as cities and their residents increasingly rely on bikes and scooters for local travel.”
Users can gain access to the shared e-scooters and e-bikes through the Lime app, allowing riders to rent a machine for varying time limits.
Greg Najarian, director of UBS O’Connor, said: “Micromobility continues to have an expanding role in cities, as regulators increasingly look for ways to reduce traffic congestion and carbon emissions.
“Lime has won prized permits in major U.S. and European cities, and we are thrilled to be supporting the largest operator in the space.”