Voi Achieves Profitability, Eyes Potential IPO

Voi Achieves First Profitable Year in 2024

According to preliminary, unaudited results released to TechCrunch, the Swedish micromobility company Voi experienced its inaugural year of profitability in 2024.

Financial Performance Highlights

Voi, a provider of shared e-scooters and e-bikes operating in over 100 European cities, generated €132.8 million ($138 million) in net revenue throughout 2024.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached €17.2 million ($17.9 million). Furthermore, adjusted earnings before interest and taxes (EBIT) amounted to approximately €100,000 ($104,000).

Despite the relatively modest adjusted EBIT figure, Voi’s founder and CEO, Fredrik Hjelm, emphasized that the company has successfully enhanced its bottom line by a full 100 percentage points since 2021, navigating a dynamic and often challenging industry.

Comparison to Industry Peers

This achievement follows a similar trend observed with Lime, another prominent player in the sector, which reported full-year profitability in 2023.

Future Outlook and Potential IPO

Hjelm indicated that the company’s improving financial performance positions it favorably for a potential public offering within the next two to three years. He stated that the company is now demonstrating genuine cash positivity and EBIT profitability.

He further explained that for a business centered around physical assets, EBIT profitability provides a more accurate representation of operational costs than EBITDA.

Detailed Financial Reporting

Voi intends to publish a comprehensive, audited financial report at the end of February, which will include details such as net income and operating expenses.

Vehicle Profit Margins

The company’s vehicle profit margins, which increased to 57% from 49% in 2023, are considered a reliable indicator of its gross margin.

Drivers of Improved Profitability

Voi’s enhanced bottom line is attributed to a series of cost reduction strategies and efficiency gains. These include automation of product development and the implementation of machine learning models for predictive maintenance and optimized battery-swapping schedules.

These improvements have also contributed to extending the lifespan of Voi’s fleet to approximately eight years, significantly boosting profitability.

Hjelm described the company’s success as the result of “a thousand small things” focused on discipline and meticulous attention to detail.

Vehicle Utilization Rates

Vehicle utilization remains strong, with each vehicle averaging up to 10 rides per day during peak periods and two rides per day during off-peak times.

Maturing Market Dynamics

Hjelm noted the initial period of shared micromobility was characterized by instability, including numerous competitors, inaccuracies in vehicle location, and parking issues. However, over the past three years, cities have become more discerning in selecting suitable micromobility operators.

This maturation has led to increased public acceptance and improved profitability for Voi.

Cash Position and Funding

As of the end of 2024, Voi held €60 million ($62 million) in cash and cash equivalents.

In October 2024, the company secured €125 million ($130 million) in senior secured bonds, primarily from Nordic and American institutional investors – a significant step for the startup, which had previously raised $675.56 million in equity funding from venture capitalists, according to PitchBook data.

Shift Away from Equity Funding

Hjelm stated that the company’s leadership decided in 2021 to reduce reliance on equity investors and prioritize achieving profitability.

Fleet Expansion and New Markets

Voi has initiated a €50 million ($52 million) drawdown from the bond issuance, which will be allocated to expanding its fleet and entering new European markets.

Currently, Voi operates a fleet of approximately 100,000 vehicles, with scooters comprising 90% of the total.

The company plans to substantially increase its e-bike fleet in the coming months.

Bond Issuance as a Vote of Confidence

Hjelm emphasized that the successful issuance of a public bond demonstrates the trust placed in Voi by sophisticated debt investors.

Potential Acquisitions

When questioned about potential acquisitions, including rumors of acquiring Bolt’s micromobility business, Hjelm confirmed that no formal offer has been made.

However, he expressed interest in acquiring Bolt at the appropriate price, asserting that Voi excels in the micromobility sector.