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Zeelo, a pioneering platform in ‘smart buses’, has successfully secured $14 million in a Series A ‘Extension’ funding round. This platform, which offers private bus and shuttle transport programs to bus operators, employers, and schools, has garnered the attention and investment of FlatzHoffmann, a European growth equity investor. Other notable participants in this round include IREON Ventures and an undisclosed Boston-based family office.
Zeelo’s US Ambitions
With the fresh capital injection, Zeelo is poised to accelerate its sales and operations, particularly focusing on the East and West coasts of the US. The company also plans to enhance its tech platform. This round of funding is particularly significant as it sets the stage for attracting US lead investors for Zeelo’s subsequent funding stages.
A Rollercoaster Journey
Zeelo’s journey has been marked by highs and lows. The company had previously announced a $100 million buyout by mass transit group Swvl, only to reverse out of the acquisition three months later due to challenges faced by Swvl. Despite this setback, Zeelo managed to retain a $5 million convertible promissory note from Swvl. To date, Zeelo’s total funds raised stand at an impressive $33.6 million.
US Expansion and Market Potential
Zeelo has established its second headquarters in Boston, Massachusetts, signaling its commitment to the US market. The company has already secured contracts with notable entities like Fidelity and other large enterprise clients. The US market offers a unique opportunity for Zeelo, especially given the limited public transport options and the rising cost of living. Zeelo’s services are particularly beneficial for workers in sectors like manufacturing and distribution who may not afford personal vehicles.
A Market Ready for Disruption
Sam Ryan, Zeelo’s Co-Founder and CEO, highlighted the vast potential of the US market. He noted the increased demand for Zeelo’s services, especially with the rise in fuel prices. While there is some competition in the market, the sheer size of the potential customer base means there’s ample opportunity for growth.
Investor Confidence in Zeelo
Christopher Hoffmann, Partner at FlatzHoffmann, expressed his confidence in Zeelo’s potential. He praised Zeelo’s robust transit-tech platform and its clear sustainability mission, emphasizing the company’s unique position in the mobility sector.
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