Bolt Secures Funding for Expansion in Emerging Markets

Bolt, a significant competitor to Uber, is focused on establishing a comprehensive on-demand service network internationally. This network aims to facilitate the transportation of individuals, food items, and various goods via cars, scooters, and bicycles throughout Europe and Africa.

IFC Investment to Fuel Growth

The International Finance Corporation (IFC), an arm of the World Bank, is contributing €20 million (equivalent to $24 million) to the Tallinn, Estonia-based startup. This investment will facilitate the expansion of services across Eastern Europe and Africa.

Specifically, the funding will target increased service availability in Ukraine and Nigeria, both key economies within their respective regions. It will also support the development of innovative services designed to cater to demographic groups that are currently underserved or underrepresented, with a particular focus on women.

Strategic Endorsement and Valuation

The IFC’s investment serves as a strong validation of Bolt’s business model. While the amount is relatively modest compared to Bolt’s overall fundraising endeavors, it carries substantial weight.

In December, Bolt successfully raised $182 million, accompanied by a considerable increase in its valuation. A company representative indicated that the valuation has further increased with this latest funding round, though the specific updated figure remains undisclosed.

IFC’s Role in Supporting Global Startups

Although not typically associated with venture capital firms like SoftBank or Sequoia, the IFC is a major investor in startups worldwide. Last year alone, the organization allocated $22 billion to various companies.

Expanding Beyond Financial Services

Investing in a transportation startup represents a noteworthy shift for the IFC, as its technological investments have historically centered on financial services. Previous investments include CurrencyCloud, Remitly, CompareAsiaGroup, and Kreditech.

However, enhancing transportation infrastructure aligns with the IFC’s development objectives. Companies like Bolt function as marketplaces, generating income opportunities and providing essential infrastructure for businesses, in addition to their core consumer service.

Partnership for Entrepreneurship and Empowerment

“We are looking forward to partnering with IFC to further support entrepreneurship, empower women and increase access to affordable mobility services in Africa and Eastern Europe,” stated Markus Villig, CEO and co-founder of Bolt. “Alongside the investment from the European Investment Bank last year, we are proud to have sizable and strategically important institutions backing us and recognizing the strategic value Bolt is providing to emerging economies.”

Differentiating Through Emerging Market Focus

Bolt’s commitment to emerging markets has consistently been a key differentiator from Uber, a strategy that is logical given Bolt’s origins in an emerging economy. Since its launch in 2013, the company has amassed over 50 million customers and more than 1.5 million drivers across 40 countries, including 400,000 drivers in 70 cities throughout Africa.

Targeting Under-Represented Groups

The company’s strategy has evolved to encompass services for under-represented groups within these markets. Bolt is currently piloting a “Women Only” ride-hailing service in South Africa, connecting female drivers with female passengers to enhance job opportunities and improve safety – a program that will be supported by the IFC funding.

“Technology can and should unlock new pathways for sustainable development and women’s empowerment,” commented Stephanie von Friedeburg, IFC senior vice president of Operations. “Our investment in Bolt aims to help tap into technology to disrupt the transport sector in a way that is good for the environment, creates more flexible work opportunities for women, and provides safer and more affordable transportation access in emerging markets.”

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