Urban mobility startup Dott has raised an extension to its Series B spherical. Originally introduced within the Spring of 2021, the corporate raised an $85 million Series B spherical — it was a mixture of fairness and asset-backed debt financing. And at present, the corporate is including one other $70 million to this spherical —as soon as once more, it’s a mixture of fairness and debt.
Dott is a European micromobility startup that’s higher recognized for its scooter-sharing service. More just lately, the corporate additionally added an electric bike-sharing service in some cities.
abrdn is main the Series B extension with Dott’s present investor Sofina. Other present traders put more cash on the desk, akin to EQT Ventures and Prosus Ventures.
Dott competes with a number of micromobility startups in Europe. Its most direct rivals are Tier, Lime and Voi. There are fairly related with regards to pricing and scooters — most of them work with Okai to design their scooters. But they don’t essentially function in the identical markets.
Right now, Dott covers 36 cities throughout 9 European nations. The firm manages 40,000 scooters and 10,000 bikes. While Dott isn’t sharing income numbers, the startup processed 130% extra journeys in 2021 in comparison with 2020.
Two different differentiating elements between micromobility operators are logistics and regulation. When it involves logistics, Dott tries to internalize its processes as a lot as potential. It doesn’t work with third-party logistics suppliers and it has its personal warehouses and restore groups to deal with its fleet.
When it involves regulation, the corporate has gained a number of permits to function in extremely coveted markets, akin to Paris and London. However, Paris is presently attempting to heavily regulate scooter-sharing companies in Paris with a brand new prime pace of… 10 km/h (that’s 6.2 mph). There are presently 700 sluggish zones in Paris with a prime pace of 10 km/h.
There are two key takeaways right here. First, constructing a micromobility firm requires a ton of capital. It shouldn’t come as a shock as shopping for scooters is pricey, charging batteries is pricey and hiring folks to make all the pieces run easily is pricey.
Second, the regulatory panorama remains to be evolving and there are nonetheless some uncertainties for scooter startups. Dott is diversifying its product providing with electrical bikes — and that looks like a sensible transfer. It’s additionally going to be fascinating to see the way it plans to optimize battery charging much more to make its service more economical.