Tier Bank Secures $60M from Goldman Sachs for Scooter Expansion

Tier Mobility Secures $60 Million for Expansion

Tier Mobility, an e-scooter company headquartered in Berlin, has successfully raised $60 million in funding during 2021.

This financial injection is intended to facilitate the growth of both the company’s scooter fleet and its network of battery swapping stations.

Investment Details and Recent Growth

The funding originates from Goldman Sachs, a prominent investment banking firm.

This investment follows closely on the heels of Tier being granted a permit to participate in the London e-scooter pilot program, joining Lime and Dott as approved operators.

With London representing a significant market and further expansion strategies anticipated, Tier requires substantial capital for fleet procurement, warehouse establishment, and team building.

Previous Funding and Loan Structure

In November, Tier completed a $250 million Series C funding round, spearheaded by SoftBank Vision Fund 2.

The recent $60 million constitutes asset-backed financing, effectively a loan from Goldman Sachs secured against Tier’s assets, most likely its scooter inventory.

Tier has not yet disclosed specific details regarding the terms of the loan.

Statements from Tier and Goldman Sachs

“The scale of this asset-backed debt facility is groundbreaking within the micromobility sector,” stated Alex Gayer, Tier’s chief financial officer.

“It will accelerate our expansion and reinforce our position as a market leader in Europe, enhancing our capital efficiency in the process.”

Ben Payne, managing director at Goldman Sachs, commented, “Tier has demonstrated a consistent record of profitability and durable assets, even during a global pandemic.”

“We are pleased to support the leading European provider in extending sustainable transportation options to a wider global audience.”

Geographic Expansion and Fleet Diversification

Over the past year, Tier has expanded its operations to include the key cities of Dubai and Paris, in addition to London.

Currently, the company operates in over 100 cities across 12 countries throughout Europe and the Middle East.

The newly acquired capital will be used to broaden its international reach and diversify its fleet by incorporating bicycles and mopeds.

Tier Energy Network Expansion

The funding will also support the expansion of the Tier Energy Network.

This initiative involves establishing battery charging stations within retail locations across Tier’s operational areas.

The network incentivizes riders to swap scooter batteries at the end of their trips in exchange for ride credits, while simultaneously increasing foot traffic for participating stores.