Image credit: FlixBus
Munich-based FlixMobility, a tech-mobility company for intermodal and sustainable transport, has announced that it has raised over $650M (approx €533.6M) in its Series G round of funding. With this latest equity and debt funding, the company reports that it is now valued at $3B (approx €2.46B).
Investors in this round
The round saw investment from a new investor Canyon Partners, a growth-oriented investment firm that invests in the technology and infrastructure sectors. Besides, existing investors also participated in this round, including FlixBus founders, General Atlantic, Permira, TCV, HV Capital, Blackrock, Baillie Gifford and SilverLake, among others.
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Smart and green mobility for everyone
Founded in 2011 by Andre Schwammlein, Daniel Krauss, and Jochen Engert, FlixMobility is a mobility provider that offers new alternatives for convenient, affordable, and environment-friendly travel via the FlixBus and FlixTrain brands. Since 2013, FlixMobility has helped over 100 million people to travel throughout Europe and has created thousands of new jobs in the mobility industry.
From locations throughout Europe and the US, the FlixTeam handles technology development, network planning, operations control, marketing & sales, quality management, and continuous product expansion. The daily scheduled service and green FlixBus fleet are managed by bus partners from regional SMEs, while FlixTrain operates in cooperation with private train companies.
The startup claims to have established Europe’s largest long-distance bus network and launched the first greenlong-distance trains in 2018. Besides piloting projects for all-electric buses in Germany and France, in 2018, the company also launched FlixBus USA to bring travel alternatives to the US.
FlixBus offers a network of more than 350,000 daily connections to 2,000 destinations in 29 countries. Together with FlixBus’s regional bus partners, its fleet of 2000 green buses offers free WiFi, innovative ticketing-systems, and flexible online booking. The company also has CO2 compensation – Carbon offset schemes allow people to invest in environmental projects worldwide to compensate for their carbon footprint.
Capital utilisation
FlixMobility believes this round is a milestone that can help the company’s mission to provide affordable and sustainable transport solutions through its global, intermodal offer of bus and rail. The proceeds from this round will help FlixMobility to fuel its network expansion strategy in new and existing geographies, as well as invest in technology to optimise the platform.
André Schwämmlein, Founder & co-CEO, says, “62 million passengers travelled with us in 2019, and this new funding will help us build on our success. We are confident in our ability to offer green mobility to even more people in the future through both an expanded network offering on rail and road in our existing markets, as well as in new countries and continents.”
He further adds, “We want to make green, affordable mobility accessible to as many people as possible. We are confident the UK will become one of our most important markets in Europe, starting with a massive expansion on domestic routes this year.”
FlixMobility has navigated the pandemic through closely managed network adjustments and heavy investments in technology and automation and is now focused on expanding its train business in Germany and Sweden.
Expansion in existing markets and new regions
Jochen Engert, founder & co-CEO of FlixMobility, mentions, “The recent financing is a strong sign for the future and for our vision to provide sustainable mobility with FlixBus and FlixTrain to people all over the world. With the closed financing, we are well-positioned for future international growth and expansion plans with FlixTrain and FlixBus.”
In addition to FlixTrain, investments will also flow into the targeted expansion of the global FlixBus network. FlixMobility’s clear goal is to become a market leader in the UK, the US and Portugal, and to further expand its position in Turkey, France, and Eastern Europe. The company is also planning to expand into new markets.
Despite the pandemic, the company has managed to come out strong. It expanded its service reach after the first wave in spring 2020, as well as adapted to the rising demand, ramping up its business instantly and launching its first domestic routes in the UK in July 2020.
Andreas Schorling, MD of FlixBus UK, says, “We believe it will be a great year for domestic travel. In 2021, FlixBus will be offering the second biggest network across the country and is on a clear path to become the largest UK player by 2025. The restart of our operation has been very successful, and we expect millions of travellers already this year.”
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