Estonian mobility platform Bolt secures a major cash infusion to prep for going public next year. Bolt announced it has landed a €220 million credit facility from a group of big investment banks including Barclays, Deutsche Bank, Goldman Sachs, and JPMorgan.
This type of credit line provides Bolt with a strategic cash reserve it can tap as needed in the lead-up to its planned 2024 initial public offering. As CEO and founder Markus Villig stated, the financing “provides additional flexibility as we work towards being IPO-ready.”
It supplements Bolt’s existing “strong cash position” and bolsters its overall liquidity runway. For the scrappy European startup taking on Uber and other giants, having a sizeable war chest is crucial.
Since launching in 2013 with just €3,000 in seed money, Bolt has rapidly grown into a €7 billion business. It offers ride-hailing, food delivery, car rentals, and micromobility services across 45 countries with over 150 million customers and 3 million drivers.
A key differentiator is Bolt’s cheaper pricing compared to Uber in many markets. However, Uber still dominates globally with around 25% total market share versus Bolt’s estimated 5% slice.
An IPO could give Bolt the funds to mount a fiercer offensive against Uber and other competitors. But the company may face investor skepticism after Uber’s disastrous 2019 IPO punctured hype around ride-sharing profitability.
Bolt will need to make a convincing case that its diversified mobility platform can reach sustained profitability, unlike some of its cash-burning public market peers. The road ahead could be a bumpy ride.
More info on Bolt Blog: https://bolt.eu/en/blog/bolt-secures-220m-revolving-credit-facility/
