Zeelo, a 'smart bus' startup targeting employers and educational institutions, raises $14 million to expand its services in the US market.

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Zeelo’s Growth Accelerates with New Investment

In a significant development, Zeelo, the ‘smart buses’ platform providing private bus and shuttle transport programs to operators, employers, and schools, has secured an additional $14 million in funding. The fresh investment was led by FlatzHoffmann, a European growth equity investor, along with IREON Ventures, the CVC arm of Motor Oil Hellas, and a Boston-based family office.

Background and Recent Developments

Zeelo’s journey to this milestone has not been without its challenges. In 2022, the company was in talks for an acquisition by mass transit group Swvl, but unfortunately, the deal fell through due to Swvl’s financial struggles after a SPAC merger. However, Zeelo managed to retain a $5 million convertible promissory note from Swvl.

Previous Funding Rounds

Before this Series A extension, Zeelo had raised $19.6 million from investors such as ETF Partners, InMotion Ventures, and angels. The company’s total funds raised now stand at $33.6 million, with its Series A funding totaling $26 million.

Expansion Plans

With the new investment, Zeelo plans to accelerate sales and operations in the U.S., specifically on the East and West coasts. The company will also focus on enhancing its tech platform to meet growing demands from customers.

Market Potential

Zeelo’s CEO, Sam Ryan, attributes the company’s success to the lack of public transport options in the U.S. and the cost of living crisis. He explains that Zeelo’s business model excels in areas with limited public transit, where people are car-dependent. "Our business… works very well in places where there’s limited public transit, where people are car dependent," Ryan said.

Unmet Demand for Private Transportation

Ryan highlights a significant increase in demand when fuel prices increased, as employees became more vocal about the cost of their cars. He emphasizes that despite some competition, the U.S. market is vast and largely untapped for Zeelo’s services.

Market Validation

Christopher Hoffmann, Partner at FlatzHoffmann, praises Zeelo’s unique approach to mobility: "Zeelo is a unique and proven mobility player headquartered in Europe with a strong expansion push to the U.S."

Future Prospects

With this additional funding, Zeelo is well-positioned to capitalize on growing demand for private transportation solutions. The company’s commitment to enhancing its tech platform will further solidify its position as a leader in the industry.