Estonia-based ride-hailing platform Bolt Technology managed to increase its value to more than 1.7 billion euros or roughly $1.9 billion thanks to a recently concluded funding round. The company, which is heavily backed by Chinese ride-hailing giant Didi Chuxing and German automotive giant Daimler, aims to use the added funds to bolster its core business and its growing food delivery and courier units.
The company, which was formerly known as Taxify, stated that one of the biggest investors in its latest funding round was Naya Capital Management, which injected more than 100 million euros. All in all, the company managed to raise more than 300 million euros through the funding round.
The new investment comes after the ride-hailing firm had sought government support to shore up its finances amid the disruptions on its business caused by the coronavirus pandemic. Since the start of the health crisis, Bolt has transformed its business and shifted to quarantine-friendly protocols that had somewhat negatively impacted its business. Bolt is currently one of the biggest beneficiaries of the Estonian government's payroll support program.
Bolt co-founder and chief executive officer, Markus Villig, mentioned in a statement that despite the temporary changes to its operations, demand for easily accessible mobility is still on an upward trend. He added that factors such as declining personal vehicle ownership and increased environmental awareness still support a long-term positive outlook for the company's business.
Outside of Europe and Africa, the company is relatively unknown in other parts of the world. Founded in 2013, the ride-hailing firm has grown exponentially over the past few years. Now, the company's platform boasts more than 30 million users and over 1 million drivers.
Bolt currently operates in more than 150 cities in over 35 countries, including Africa, Europe, West Asia, North Africa, and some parts of North America. With the support of more established companies such as Didi Chuxing and Germany's Daimler, Bolt has managed to expand its business, which now includes food delivery and courier services.
Bolt received an undisclosed investment from Didi Chuxing in 2017 as part of a strategic partnership. Reports claimed that the investment was in the eight-figure US dollar range. In 2018, Daimler made a substantial $175 million investment in the company. Through additional funding rounds led by its major investments, the company finally breached a valuation of more than $1 billion, earning it a unicorn status and making it a viable competitor to established giants such as Uber and Lyft.
