Tier Mobility Secures $200M in Series D Funding

Tier Mobility Secures $200 Million in Series D Funding

Berlin-based Tier Mobility, a leading provider of e-scooter rentals, has announced the initial closing of its Series D funding round, raising $200 million. This investment signifies continued confidence from investors in the expanding urban micromobility sector.

Details of the Funding Round

The company confirmed to TechCrunch that a larger funding amount is anticipated before the Series D round concludes. This complete round will incorporate both debt and equity, with the current tranche consisting solely of equity.

Tier representatives indicated their intention to secure additional funding through both an expanded equity round and a new debt facility.

Previous Funding and Market Context

This announcement follows a $60 million debt raise completed earlier this summer and a substantial $250 million Series C round led by SoftBank in November of the previous year.

Micromobility companies often require significant capital expenditure, particularly when scaling their fleets during periods of growth, making debt financing a common practice.

Strategic Use of Funds

Alex Gayer, Tier Mobility’s chief financial officer, stated that the equity funding will fuel global expansion and enable strategic investments and acquisitions.

Vehicle capital expenditure will be supported by the newly unlocked debt capacity, with the overarching goal of establishing Tier as the dominant micro-mobility provider in Europe.

Investors Participating in the Round

SoftBank Vision Fund 2 and Mubadala Capital, a UAE-based firm that also invested in Tier’s Series C, are co-leading the Series D round.

Existing investors, including RTP Global, Novator, White Star Capital, Northzone, and Speedinvest, also participated in this funding round.

Expansion into New Markets

Mubadala’s increased investment follows Tier’s successful entry into the UAE market last year, following a trial period approved by the Roads & Transport Authority.

New investors joining the round include M&G Investments, a green impact fund, and Mountain Partners, a global investment holding company.

Company Valuation and Total Funding

Tier’s current valuation is estimated at $2 billion, approximately double its valuation around the time of its Series C funding last year.

To date, the company has raised a total of $660 million in both equity and debt financing.

Competitive Landscape and Market Position

Tier competes with numerous players in the e-scooter and e-bike market, including Bird, Dott, Lime, Voi, and Wind.

However, increasing regulation by cities worldwide, which limits the number of operators per city, provides a competitive advantage to companies that secure provider slots.

Recent Wins and Expansion Plans

Tier recently secured a tender to provide e-scooters for a trial program in London, alongside Dott and Lime.

The company is also expanding into new markets in the Middle East, including Manama (Bahrain) and Doha (Qatar).

Operational Scale and Multimodal Options

Tier has deployed a fleet of 135,000 e-scooters, e-bikes, and e-mopeds across 150 cities in 16 countries.

The company positions itself as the European market leader through its capital efficiency and operational excellence.

Future Strategy and Consolidation

The new funding will be allocated to acquisitions, strategic investments, and further international expansion, particularly in Europe and the Middle East.

Industry analysts anticipate further consolidation within the e-scooter market as new capital becomes available.

Tier Energy Network and Vehicle Variety

Tier will also invest in expanding its Tier Energy Network, a network of battery charging stations hosted by local businesses.

The company is expanding its multimodal offerings, becoming the first European micro-mobility provider to offer e-scooters, e-bikes, and e-mopeds within a single app.

Leadership Statements

Lawrence Leuschner, CEO and co-founder of Tier, emphasized the funding’s role in fulfilling the company’s mission to “Change Mobility For Good.”

He highlighted the company’s success in completing over 80 million trips and replacing over 13 million car rides.

Amer Alaily, director at Mubadala Capital Ventures, Europe, praised the Tier team’s passion and commitment to sustainability, expressing confidence in their continued success.

Clarification on Funding Structure

This report has been updated to reflect Tier’s confirmation that the $200 million raise represents an initial, all-equity tranche of a larger Series D round, which will ultimately include both debt and equity components.