Tier, a micromobility company headquartered in Berlin, has successfully secured a substantial Series C funding round totaling $250 million. This investment is being spearheaded by SoftBank Vision Fund 2, demonstrating the fund’s continued commitment to ventures with significant growth potential and inherent risk.

SoftBank’s Vision Fund has a history of participation in numerous late-stage funding initiatives, with a portfolio encompassing companies like Nuro, Getaround, GetYourGuide, DoorDash, Grab, and WeWork. However, this marks the firm’s initial investment within the electric scooter-sharing sector.

Current investors, including Mubadala Capital, Northzone, Goodwater Capital, White Star Capital, Novator, and RTP Global, are also contributing to this latest funding round. Reports from the Financial Times indicate the company’s valuation is approaching $1 billion.

Although Tier may not be widely recognized in the United States, the company is experiencing rapid expansion throughout Europe. Currently, it operates in 80 cities across 10 countries, offering a fleet of 60,000 electric scooters accessible through its application.

Similar to other e-scooter rental services like Lime, Bird, and Dott, Tier allows users to unlock scooters via a mobile app and conclude their rides by locking the scooter in a designated location, with charges calculated per minute of use.

This new capital injection will enable the company to broaden its geographic reach, increase its vehicle deployment, and introduce innovative products. Tier is also actively pursuing a credit line to further facilitate the acquisition of additional vehicles.

Tier is focused on establishing distinct characteristics that set it apart from its competitors. A key example is the development of its fourth-generation scooter, which features user-replaceable batteries.

To achieve this, Tier plans to establish energy networks within European cities. Local businesses can partner with Tier to host battery docks equipped with four charging slots. Users can then exchange depleted batteries for fully charged ones at the end of their rides, receiving credit as an incentive – a system similar to Gogoro’s charging station network in Taiwan.

Tier, much like Dott, positions itself as a logistics provider rather than a traditional sharing-economy company. The company prioritizes process optimization and a centralized operational model over cost reduction through freelance labor.

Further differentiating itself, Tier is beginning to equip scooters with a storage box below the handlebars for a foldable helmet. Additionally, the company sells refurbished scooters to consumers in Germany through its myTIER platform and has also acquired electric mopeds in Berlin.

According to Business Insider, Tier achieved profitability based on EBITDA during the third quarter of 2020, although the company experienced losses in the first half of the year. Scooter usage tends to fluctuate seasonally, with increased demand during warmer months.

The ongoing COVID-19 pandemic introduces uncertainty regarding market development. However, Tier’s current financial position provides the company with substantial resources to navigate future challenges.