Bird to Go Public via SPAC at $2.3B Valuation

Bird Scooters to Become Publicly Traded Company

Bird, the electric scooter company operating in over 200 cities spanning three continents, announced Wednesday its plans to become a publicly listed entity. This will be achieved through a merger with special purpose acquisition company Switchback II, resulting in an implied valuation of $2.3 billion.

This announcement validates previous reports, including one earlier this week from dot.LA, indicating Bird’s intention to go public utilizing a SPAC.

Funding and Financial Details

Bird successfully secured $160 million in private investment in public equity, known as a PIPE, with participation from institutional investors like Fidelity Management & Research Company LLC, among others. Additional asset financing totaling $40 million was provided by Apollo Investment Corp. and MidCap Financial Trust.

(Please note: Apollo is currently in the process of acquiring Verizon Media Group, the parent company of TechCrunch.)

The completed transaction is projected to provide the combined company with up to $428 million in net cash proceeds. Switchback contributes $316 million in cash-in-trust to this total.

Further details revealed a previously unreported $208 million raised by Bird privately during an April 2021 Senior Preferred Convertible equity offering. This offering was spearheaded by Bracket Capital, Sequoia Capital, and Valor Equity Partners.

Path to Public Listing

Speculation regarding Bird’s public offering strategy began last November when Bloomberg reported the company had received “inbound interest” from several SPACs.

The company’s journey hasn’t been without challenges. Revenue decreased to $95 million in 2020, representing a 37% decline from the prior year.

In response to financial pressures, Bird reduced its workforce by approximately 30% – a total of 406 employees – as a cost-saving measure.

Future Plans and Profitability

The influx of capital may facilitate expansion of Bird’s operations in Europe and allow for debt repayment.

Achieving profitability is a primary goal, a relatively uncommon feat among scooter-sharing startups due to their substantial operational costs.

According to a Bird spokesperson, “We plan to scale our platform to provide our low carbon transportation services to more people in more cities around the world, as well as create further operational efficiencies across our network.”

The company also intends to diversify its offerings by introducing new vehicle types, such as bicycles, to encourage a shift away from gasoline-powered vehicles and generate additional revenue streams.

SPACs in the Transportation Sector

Special purpose acquisition companies (SPACs) have emerged as a popular method for transportation startups to enter the public market.

Earlier this year, Helbiz, a scooter company with a presence in Europe and the U.S., completed its public listing through a merger with GreenVision Acquisition Corp. These SPACs provide a pathway to listing on the Nasdaq without undergoing a traditional initial public offering.

This article has been updated to accurately reflect the number of cities served by Bird, include Bird’s official statements, and acknowledge Apollo’s acquisition of Verizon Media Group, which owns TechCrunch.