SoftBank bets big on electric scooter with $250 million investment in Germany’s e-scooter rental startup Tier Mobility

SoftBank is back with its spending spree after it made its foray into real estate with a $200 million investment in Clutter at a $600 million valuation in February 2019. Now, SoftBank is making another big bet, this time the tech giant is leading a $250 million investment in Berlin, Germany-based e-scooter rental startup Tier Mobility.

In addition to SoftBank Vision Fund 2 leading the Series C funding round, the existing investor Mubadala Capital announced follow-on investments in the double-digit million alongside continued investment by Northzone, Goodwater Capital, White Star Capital, Novator, Speedinvest and RTP Global.

Founded just two years ago by Julian Blessin, Lawrence Leuschner, and Matthias Laug, Tier is a provider of sustainable micro-mobility sharing-solutions. Tier is revolutionizing urban transport with innovative new technologies and micro-mobility solutions that significantly reduce car traffic and free cities from emissions and congestion. The startup is one of the fastest-growing micro-mobility companies in Europe, expanding its operations to 32 European cities in less than nine months.

Since its 2018 launch, Tier has deployed 60,000 e-scooters across 80 cities in ten countries. The Berlin-based company is already profitable and will use the investment to accelerate the company’s vision to Change Mobility for Good. Tier says it managed to reach profitability for the first time this year. According to CEO Lawrence Leuschner, the company “will be very close to full profitability this year.”

In a blog post on its website, Tier said the new funding will be used “to significantly extend the company’s leading coverage in Europe, to accelerate its ambitious expansion into strategic growth markets and to fast track its TIER Energy Network; a groundbreaking innovation that will see thousands of charging stations installed in cities across Europe to power electric vehicles in the most efficient and sustainable way.” In addition to the closed series C investment round, Tier is currently in the process of securing a significant debt facility to fund vehicle expansion.

“After achieving profitability with our e-scooters, we have in place the foundations to lead the way towards seamless and sustainable mobility. Our vision is a completely new way of how we will move in cities in the future: all-electric, shared and affordable, and with different vehicles powered by one energy network. Together with, city and national government, we will build the best solutions to ensure safe, highly efficient, and sustainable movement from A to B,” Lawrence Leuschner, CEO and co-founder of TIER, said.