The Swedish micromobility powerhouse Voi achieved profitability for the first time in 2024, as indicated by preliminary unaudited results disclosed exclusively to TechCrunch.
Voi, which provides shared electric scooters and bikes across over 100 locations throughout Europe, reported a net revenue of €132.8 million ($138 million) for this year. Adjusted earnings show that Voi generated €17.2 million ($17.9 million) in earnings before interest, taxes, depreciation, and amortization (EBITDA), alongside approximately €100,000 ($104,000) in adjusted earnings before interest and taxes (EBIT).
Although a profit of €100,000 (on an adjusted basis) may not seem substantial, Fredrik Hjelm, Voi’s founder and CEO, remarked to TechCrunch that this achievement signifies a 100 percentage point enhancement in Voi’s bottom line since 2021, despite the company navigating a challenging and volatile industry.
Another key player in the market, Lime, reported achieving full-year profitability in 2023.
“We are beginning to exhibit consistently positive cash flow and EBIT profitability, positioning us as a strong contender for public markets in the next two to three years,” Hjelm stated.
Hjelm emphasized the importance of highlighting EBIT profitability over EBITDA in a business that relies on physical assets, as EBIT is more reflective of operational costs.
Voi has yet to disclose further financial specifics, such as net income and operating expenses, but Hjelm mentioned that a comprehensive audited report would be made available by the end of February.
He did reveal that Voi’s vehicle profit margins have increased to 57%, compared to 49% in 2023, serving as a “proxy” for the company’s gross margin.
The CEO credits the company’s enhanced profitability to various cost-reduction initiatives and efficiency enhancements, including automation in product operations and the application of machine learning models for predictive maintenance and battery-swapping schedules. He claimed these advancements have extended the lifespan of Voi’s fleet to roughly eight years, significantly contributing to profit improvements.
“A thousand small measures lead to one greater focus, which is an unwavering commitment to discipline and attention to minor details,” Hjelm noted.
Hjelm remarked that vehicle utilization rates are also impressive, with each vehicle averaging up to 10 rides daily during peak months and about two rides daily during off-peak periods.
“The initial years of shared micromobility were chaotic due to the influx of operators, vehicle placement issues, and parking congestion,” Hjelm explained. “In the last three years, cities have evolved by opting for operators that suit their micromobility schemes, leading to enhanced public acceptance and profitability for us.”
By the close of 2024, Voi reported €60 million ($62 million) in cash and cash equivalents. In October 2024, Voi finalized €125 million in senior secured bonds ($130 million), primarily supported by Nordic and American institutional investors — a significant move for the startup, having previously raised $675.56 million in equity from venture capital, according to PitchBook data.
“By the end of 2021, my CFO and I agreed that we no longer wanted to rely on equity investors, so we focused on making the company profitable,” Hjelm stated.
Voi has completed an initial withdrawal of €50 million ($52 million) from the bond issuance, which will be allocated towards expanding its fleet and venturing into new European markets. Currently, Voi operates approximately 100,000 vehicles, 90% of which are scooters.
“This year, we plan to significantly boost our bike fleet in the coming months,” Hjelm added.
“Raising a public bond reflects the confidence of sophisticated public debt investors in our business model,” he continued.
When questioned about potential acquisitions, especially regarding rumors of Voi acquiring Bolt’s micromobility division, Hjelm clarified that no definitive acquisition offers are on the table.
“However, I would consider it at the right valuation,” he remarked. “While Bolt has its strengths, we excel in micromobility!”
Compiled by Techarena.au.
Fanpage: TechArena.au
Watch more about AI – Artificial Intelligence
