Zeelo Rides High: Securing $14 Million in Series A Extension to Fuel U.S. Growth and Innovation

August 26, 2023
Zeelo Logo

Key Takeaways

  • Zeelo has raised $14 million in an oversubscribed Series A extension round led by FlatzHoffmann and backed by three new venture capital firms.
  • Co-founders Sam Ryan and Barney Williams have relocated to Boston to spearhead U.S. expansion.
  • Zeelo commits to a net-zero service by 2030, and nearly 10% of its UK services are already electric.
  • The newly-acquired funds will be used to launch new technological features for bus operators and to scale operations to serve new U.S. enterprise clients.

About Zeelo

Founded in 2016, Zeelo is a global transit-tech company that provides cutting-edge solutions to bus operators, employers, and educational institutions. By merging software and managed services, Zeelo delivers sustainable, affordable, and highly efficient transportation solutions. With live operations on three continents and an experienced team at the helm, Zeelo is fast becoming a leading name in the Transport-as-a-Service (TaaS) platform sector.

The $14 Million Leap: Zeelo’s Series A Extension

Boosting U.S. Operations

Zeelo has set its eyes on the lucrative American mass transit market, worth an estimated $40 billion. The company recently secured $14 million in Series A extension funding led by European growth equity investor FlatzHoffmann. The investment also saw participation from new venture capital firms, including IREON Ventures and an unnamed Boston-based family office.

“Developed markets are underserved for daily mass transportation needs, and we have seen increased demand for our transit-tech solution in the United States over the past 12 months,” says Sam Ryan, Co-Founder and CEO at Zeelo.

To meet this surging demand, co-founders Sam Ryan and Barney Williams have relocated to Boston, establishing a second headquarters to amplify operations across the U.S.

Tackling Unmet Transportation Needs

Improving Efficiency for Employers and Schools

Zeelo addresses a critical gap in the mass transit landscape, particularly in suburban and peri-urban areas. Their software enables organizations to save an average of 12 hours per week on administrative tasks. Moreover, they can increase bus ridership by 50% and realize an average cost-saving of 43% per year for employee shuttle services.

A Commitment to Sustainability

Towards Net-Zero by 2030

One of the most impressive aspects of Zeelo is its unwavering commitment to sustainability. Nearly 10% of all Zeelo services in the UK are already operated using battery-electric vehicles. By 2030, the company aims to transition all its services to net-zero emission modes of transport.

“We are convinced of Zeelo’s experienced leadership team and their ability to innovate and execute. They have come very far in building their business, and we look forward to supporting their growth strategy for developed markets,” says Christopher Hoffmann, Partner at FlatzHoffmann.

Looking to the Future

New Features and Technological Advancements

The newly secured capital will be channeled into accelerating new product development, particularly technological features that benefit bus operators. This will not only improve client relationships but will also streamline operations, setting the stage for the rapid scaling of large-scale, multi-site transportation contracts across North America.

In summary, Zeelo is at an exciting crossroads. With a fresh influx of capital, a foothold in the enormous U.S. market, and an unwavering commitment to sustainable growth, Zeelo is clearly a company on the move. And for those who have been watching its journey, the road ahead seems paved with promise and countless opportunities.

For more information about Zeelo and its groundbreaking transportation solutions, visit Zeelo’s official website.

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