FlixMobility Secures $650M+ Funding at $3B Valuation

FlixMobility Secures $650 Million to Expand Transportation Network

As global travel begins to recover – with hopes that further COVID-19 outbreaks won't impede progress – a significant player in the on-demand transportation sector is announcing a substantial funding round. FlixMobility, the parent organization of FlixBus coach services and FlixTrain rail operations, has successfully closed a Series G funding round exceeding $650 million. This investment values the Munich-based company at over $3 billion.

Funding Details and Expansion Plans

Jochen Engert, a co-founder and co-leader of the company alongside André Schwämmlein, characterized the funding as a “balanced” combination of equity and debt during a press briefing. The capital will be allocated towards expanding the company’s network both within the United States and throughout Europe.

The investment round saw participation from new investor Canyon Partners, as well as existing stakeholders including General Atlantic, Permira, TCV, HV Capital, Blackrock, Baillie Gifford, and SilverLake. The founders also contributed to this oversubscribed round.

Resilience and Recovery from the Pandemic

The considerable size of this funding round, coupled with the increased valuation – a $1 billion rise since the last funding in 2019 – demonstrates FlixMobility’s strong recovery from the pandemic. Investors are clearly supporting the company’s ambitious goals.

Like many in the travel and transportation industries, FlixMobility experienced a near-complete halt in operations last year, forcing a period of strategic pause. Notably, the passenger figures the company cites – 62 million passengers in 2019 – predate the onset of the pandemic.

Adapting to Challenges and Focusing on the Future

“The COVID-19 pandemic presented the most significant challenge for any mobility company,” stated Schwämmlein during a discussion with reporters, “and naturally, this profoundly impacted our business.”

The company implemented enhanced safety protocols and even expanded services in certain regions like Portugal and the United Kingdom. However, services were largely reduced or suspended entirely throughout the past year. “We can take pride in what we’ve been able to deliver to our customers,” he added.

Schwämmlein emphasized the company’s shift in focus towards “the anticipated recovery.”

Optimism for a Rebound in Travel

“We observe that the pandemic situation is improving, vaccination rates are increasing, and it’s time to transition back to a proactive strategy,” he explained. “The U.S. is currently leading the way, with bookings already surpassing pre-COVID levels. European markets are following suit, with a lag of one to two months. We are therefore very optimistic about a strong rebound in travel this summer as nations progress with their vaccination programs.”

U.S. Expansion and Future Strategy

Pierre Gourdain, managing director of FlixBus USA, announced plans to increase the number of buses in the U.S. fleet. The company anticipates exceeding its pre-pandemic U.S. capacity by July 4th.

Evolving Business Model

The future direction of FlixBus remains somewhat uncertain. In 2019, the company described its network as akin to the “Uber” of buses and trains, operating in 29 countries with 300 independent partners and facilitating approximately 350,000 daily connections to over 2,000 destinations.

Given the inevitable impact on some partners during the past year, a key question is whether FlixMobility, now with increased capital, will pursue a more direct role in vehicle operation, alongside its core function of maximizing vehicle occupancy.

Further updates will be provided.