Amidst a significant resurgence of coronavirus cases throughout Europe, an Estonian company developing an on-demand service for transporting both goods and people via cars, scooters, and—recently—bicycles across EMEA’s developed and emerging economies, has announced a substantial funding injection.

Bolt, operating in 200 cities across 40 countries with its delivery and transportation solutions, has secured €150 million (equivalent to $182 million based on current exchange rates) in an equity financing round. According to CEO and co-founder Markus Villig, this capital will be strategically allocated to accelerate geographic expansion and solidify its position as the foremost provider of electric scooters in Europe.

Currently, Bolt serves approximately 50 million customers. Villig has structured the business around two key differentiators compared to competitors like Uber: robust capital efficiency, which he terms “frugality,” and a strong focus on serving emerging markets, in addition to established cities such as London, Paris, and the upcoming launch in Berlin.

“This funding round was unique in that we secured it while still holding a substantial portion of our previous funding, despite the challenges presented by COVID-19,” he explained. “This demonstrates the company’s financial discipline. Lockdowns limited our expansion pace, leaving us in a strong financial position for 2021.”

The investment round is spearheaded by D1 Capital Partners, with additional participation from Darsana Capital Partners. D1 Capital has been a prominent investor in high-growth startups this year, including investments in eyewear retailer Warby Parker, gaming engine developer Unity, car marketplace Cazoo, and financial technology firm TransferWise, representing collective valuations in the billions of dollars.

Villig refrained from disclosing Bolt’s current valuation but indicated it is more aligned with recently publicly listed DoorDash’s valuation multiple of 1.5x gross merchandise value (GMV—the total value of transactions on Bolt’s platform) rather than the 0.5x GMV valuation seen by some other companies in the transportation sector.

He also revealed that Bolt’s annual GMV currently stands at approximately €2 billion, which, based on his calculations, would suggest a valuation of €3.5 billion ($4.3 billion). Villig did not confirm or deny this calculation.

For context, Bolt was valued at $1.9 billion in May of this year after raising slightly over $100 million. At that time, the company reported 30 million users, and has since added 20 million users in roughly six months.

The company’s trajectory presents a contrast to Uber’s approach, which involved rapid and costly expansion into numerous markets and product areas, many of which have since been divested (see also here, here and here for further details).

Originally founded as Taxify, the company initially concentrated on ride-hailing services in emerging markets with less oversight. It rebranded as Bolt in 2019 as it accelerated its strategy, launching in cities like London and expanding into micromobility, particularly electric scooters. Its primary markets currently include the U.K., France, South Africa, and Nigeria.

The company has encountered obstacles, including a failed initial launch in London—halted by regulators responding to an attempt to leverage a regulatory loophole—which provided a valuable lesson for future endeavors.

Despite this evolution, Villig emphasized the company’s commitment to maintaining a frugal operating philosophy when evaluating new investments and growth strategies. This approach influences decisions regarding new scooter models and commitments to reducing carbon emissions.

He highlighted that, unlike many companies experiencing job losses, particularly those impacted by declining user numbers, Bolt has not implemented any layoffs.

It is noteworthy to observe how companies are adopting divergent strategies in the current environment.

The food delivery sector exemplifies this trend, with consolidations like Uber’s acquisition of Postmates and Just Eat Takeaway’s acquisition of Grubhub. Simultaneously, smaller players have struggled to scale and have been forced to close. In this context, Bolt is intensifying its focus on food delivery, with Bolt Food operating in 16 countries and 33 cities, with further expansion planned.

“Many have yet to fully recognize the significant potential within our food delivery segment,” Villig stated.

“We are consistently adding restaurants to our platform. There are cost efficiencies across various areas, including the supply side, where drivers can fulfill both passenger and food delivery requests. Furthermore, we are now able to offer opportunities to drivers previously ineligible for car-based services due to licensing requirements, as bicycle deliveries do not necessitate the same credentials. This allows us to expand our driver network without incurring additional recruitment costs.”

Villig noted that Bolt benefited from entering the food delivery market in 2019, as restaurants seeking additional revenue streams were receptive to new platforms, particularly in the wake of the pandemic and associated closures and reduced dining capacity.

This adaptability in navigating challenging market conditions has attracted investor interest, prompting the decision to finalize the funding round in preparation for 2021.

“We are pleased to partner with Bolt as they continue to develop a leading mobility platform across Europe and Africa,” said Dan Sundheim, founder of D1 Capital, in a statement. “The team has performed exceptionally well during a difficult year, consistently providing millions of users with safety, flexibility, and excellent value. We are optimistic about Bolt’s growth prospects following the COVID-19 pandemic and look forward to supporting their innovation efforts in the years ahead.”