As consumers around the world slowly start to get moving again — fingers crossed that new waves of COVID-19 cases do not set that back — one of the big players in on-demand mass transportation services is announcing a growth round to move with them. FlixMobility, the parent company of the FlixBus coach network and the FlixTrain rail service, has closed more than $650 million in a Series G round of
The Munich-based company is now valued at over $3 billion thanks to a round of fundraising.
In a press call earlier today, Jochen Engert, who co-founded and leads the company with André Schwämmlein, described the round as a “balanced” mix of stock and debt, and stated that the funds will be used to grow the firm’s network both in the United States and across Europe.
Canyon Partners, General Atlantic, Permira, TCV, HV Capital, Blackrock, Baillie Gifford, and SilverLake, as well as the founders, all participated in the round, which was oversubscribed, according to the company, which is one reason why it isn’t putting an exact figure on it because it could grow; another reason is that, with debt, companies can typically borrow more if needed.
FlixMobility is coming out of the epidemic swinging, with investors backing its goals, as evidenced by the size of the round and the increased valuation – it’s up $1 billion since FlixMobility last raised in 2019 — Last year, like others in the transportation and tourism industries, business came to a standstill, putting it on hold until better times arrived.
He went on to say that instead of focusing on the “renowned light at the end of the tunnel,” the corporation has been trying to focus on “the famous light at the end of the tunnel.”
“We perceive that the pandemic situation is improving, that vaccinations are increasing, and that it is time for us to return to offence,” he concluded.
“At the moment, the United States is leading; we are already exceeding pre-COVID bookings in the United States, the European Union, and globally.
What isn’t obvious is how the new FlixBus will look. In 2019, the company announced that its network — which some have dubbed the “Uber” for buses and trains because FlixMobility does not own the vehicles that run under its services — served 29 countries and worked with 300 independent bus and train partners, resulting in 350,000 daily connections to more than 300 destinations There are 2,000 possible destinations. With some of those partners inevitably departing in the previous year, one key question will be if FlixMobility, now equipped with a large amount of loan financing, will attempt to play a more active role in vehicle operations in addition to its primary goal of filling places on them.