Estonian mobility startup Bolt has secured a €220 million credit facility as it aims to go public next year.
This type of financing is a more flexible loan option that allows a business to withdraw and repay funds on an ongoing basis as needed. A bit like a business credit card.
The credit facility provides Bolt with “additional flexibility as we work toward being IPO ready,” said CEO and founder Markus Villig said in a statement.
Lenders include Barclays, Deutsche Bank, Goldman Sachs and JPMorgan. The money complements Bolt's “strong liquidity position” and “strengthens its liquidity profile,” the company said.
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In addition to its ride-hailing service, Bolt offers food delivery, car rentals, and dockless e-scooter and e-bike sharing. The startup started last year Food delivery with autonomous robots in his hometown Tallinn.
Villig started Bolt in 2013 with just €3,000 in his pocket and only a few dozen drivers using the ride-hailing app. The company is now worth more than 7 billion euros. The company claims to have signed up over 3 million drivers and counts 150 million customers in 45 countries.
Part of Bolt's success is that its fares are generally cheaper than rival Uber. Still, the US giant accounts for 25% of all ride-hailing and taxi trips worldwide. Bolt's share is estimated at about 5%.
An IPO could give Bolt the cash infusion it needs to win back some customers from competitors. Anyway, if Uber's terrible IPO In 2019, Bolt may have a hard time convincing investors that ride-hailing and food delivery are still the hot commodities they once were.
