German transport app FlixMobility raises $ 650 million from investors
By Douglas Busvine
The fundraising will allow FlixMobility to grow as key markets in Europe and the United States emerge from the coronavirus pandemic and people begin to travel more, its founders Andre Schwaemmlein and Jochen Engert told reporters.
They said FlixMobility cut services during the closures but remains in close contact with partners who operate its branded buses and trains, so that they can now rapidly scale up services.
“With our asset-light model, we were able to react very quickly to variations in demand,” Schwaemmlein said at an online press conference.
“The most important thing for our partners is that after the pandemic we are there for them to generate long term income.”
The Series G investment cycle, a mix of equity and debt, was joined by new US investor Canyon Partners, while existing backers General Atlantic, Permira, TCV, HV Capital, BlackRock, Baillie Gifford and SilverLake also participated.
Despite the pandemic, FlixMobility has increased its valuation from the 2 billion euros ($ 2.44 billion) made in its last funding in 2019 when it attracted 500 million euros – a record for a German startup at the time.
Also on Wednesday, Munich-based software company Celonis raised $ 1 billion from investors in the largest venture capital round ever for a German startup.
FlixMobility said it will invest the proceeds in expanding its network to become the market leader in Britain, the United States and Portugal, and expanding its market lead in Turkey, in France and Eastern Europe.
It will also invest in its FlixTrain services in Germany and Sweden.
($ 1 = 0.8205 euros)
(Reporting by Douglas Busvine; Editing by Riham Alkousaa and Jane Merriman)