Australian E-Bike Subscription Service Zoomo Raises $60M

Julija A. Image
ByJulija A.
November 18,2021

Zoomo, an Australian startup that builds and lends out e-bikes to couriers for last-mile delivery, has recently raised $60 million in Series B funding. With a healthy dose of backing and an eco-friendly business approach, Zoomo prepares to take on the European market.

Zoomo provides electric bikes and mopeds to food and retail delivery drivers in exchange for a monthly subscription. Besides the vehicles themselves, couriers get access to accompanying software and maintenance services. The company works with both fast food and grocery networks like Domino’s and with gig workers directly through delivery apps like DoorDash. Couriers pay a weekly subscription fee, which ranges from $20 to $49.

The Series B round of funding is made of asset-backed debt and equity. The equity part, which comprises about half of the $60 million raised, was led by Grok Ventures, Skip Capital, and ArcTern Ventures. Funding was further supported by a slew of clean-energy investors, including AirTree Ventures and Clean Energy Finance Corporation.

According to Zoomo, the equity will be invested directly into its platform - both in the servicing network and accompanying software. The funding’s debt facility portion came from the Israeli Viola Group.

Zoomo is looking to disrupt the current last-mile delivery ecosystem. Mina Nada, Zoomo’s co-founder, expanded, “We really see ourselves disrupting Rivian. We think that it doesn’t make sense for 90% of deliveries in the United States of two-kilogram burgers to be done in two-ton vehicles. And we really think that that’s going to change fundamentally to being Zoomo vehicles in the future.”

Unlike Zoomo, Rivian mainly produces and lends out electric SUVs and pickup trucks. Rivian recently went public, with an implied valuation of $90 billion. Zoomo’s play is to argue that these big vehicles are both more damaging to the environment than e-bikes and cause significantly more congestion and slowdowns due to their size and speed.

Zoomo seems to be preparing to take on the European market, with the UK being its main target. The startup already has a partnership with GoPuff, which entered the UK market through its Dija acquisition.

About the author

Julia A. is a writer at With experience in both finance and marketing industries, she enjoys staying up to date with the current economic affairs and writing opinion pieces on the state of small businesses in America. As an avid reader, she spends most of her time poring over history books, fantasy novels, and old classics. Tech, finance, and marketing are her passions, and she’s a frequent contributor at various small business blogs.

More from news

The US drive-thru restaurant franchise Checkers & Rally’s closed a multimillion-dollar deal with Israeli startup Hi Auto and purchased its AI-based speech recognition software.  The restaurant chain announced that it was implementing the technology in all the company-operated stores and most of the franchised locations.  Hi Auto’s technology will enable Checkers & Rally’s customers to place their orders through an automated speech recognition system that reportedly has a 95% accuracy rate. The system is capable of recording changes in the order during conversations with customers and understands complex menus and even half-sentences.  In short, the solution acts as the perfect employee who does not grow weary, never misses a day of work, is always polite, and never forgets to suggest upsells. The system helps solve the labor shortage problem in the US restaurant industry, which loses hundreds of thousands of employees each month. When compared to human employees, the software is able to take orders faster and handle more customers simultaneously without any errors. The move is seen as a strategic one by Checkers & Rally’s, which has been struggling in recent years to keep up with the likes of major chains such as Wendy’s, Burger King, and Jack in the Box.  Along with investing in restaurant POS systems that streamline order management, Checkers & Rally's has also been upgrading its mobile app. The goal is to make it easier for customers to order and pay ahead without having to wait in line for the cash register. The deal is also a major achievement for Hi Auto, which was founded in 2019 by Zohar Zisapel and has raised $8 million to date. The company will now be able to scale its operations and widen its presence in the US market with one of the biggest fast-food companies as its client.
By Julija A. · March 18,2022, a US- and China-based autonomous driving tech-startup company, reported on March 7, 2022, that its valuation had peaked at $8.5 billion.
By Julija A. · March 14,2022
On January 25th, New York and Tokyo-based startup Bokksu announced its Series A funding round raised $22 million.
By Julija A. · February 07,2022

Leave your comment

Your email address will not be published.

There are no comments yet