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Bolt Raises $8.4 Million In The Latest Funding Round

Uber's European competitor, Bolt, reaches a valuation of $8.4 billion in a new funding round

With each passing day, competition gets tougher for Uber in Europe. Passenger transport startup Bolt has reported raising 628 million euros ($711 million) in a funding round led by Sequoia Capital and Fidelity.

The investment, also backed by Whale Rock, AllRock and some previous investors in Bolt, saw the 8-year-old Estonian company’s valuation of 7.4 billion euros ($8.4 billion), up from just $4.8 billion five months ago.

Founded in 2013, Bolt became a fierce competitor to Uber, challenging the American passenger transport giant in key markets such as London and Paris, and has since expanded its business into other areas, including online food ordering, grocery delivery and electric scooter rental.

Investors are beginning to notice the value of a “super app”, a concept that has multiple services together on a single platform. The trend is more popular in Asia, but it has been late to launch in Europe and North America.

Bolt, which now has 100 million customers in about 45 countries in Europe and Africa, touts that its business model is leaner and more cost-efficient compared to Uber, which struggled to be profitable for a long time until the third quarter of last year, but it has a strong opportunity, according to analysts’ expectations, with the introduction of new services and the recovery of markets from the epidemic. Read more [Uber’s Revenue Flies And Loses Its Stake In Didi] and [Uber Stock May Be a Preferred Option Among Investors in 2022] and [Uber Will Start Offering Cannabis Delivery Services].

According to its financial report, Bolt lost 44.9 million euros during 2020, down from 85.5 million euros in the previous year, but revenue grew by 75% to 221.4 million euros.

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