The motorcycle rental start-up based out of Sao-Paulo, Mottu has acquired the equity of $30 million in its Series B funding round. The company has also secured debt financing of $10 million. The main aim of Mottu is to work with independent couriers for the food delivery apps as well as logistics. Purchasing a motorcycle is not an option for most of the workers (if not all) due to poor or no credit.
The company initiated its operations with a fleet of around 200 motorcycles in early 2020 in Sao Paulo. By the end of that year, the company was generating an annual recurring revenue of $2 million with up to 1,000 motorcycles. In the present day, Mottu is operating with a fleet of 10,000 motorcycles in eight Brazilian cities and Mexico City as the company grew its ARR by 5x in 2021 reaching $10 million by the end of last year, according to Rubens Zanelatto, CEO and founder of Mottu.
The start-up is one of the few on a mission to support people with employment opportunities through the rental model.
The debt portion of the company’s financing was provided by one of the largest investment management companies in Brazil, Verde Asset. Zanelatto has said that the capital will help to quadruple the fleet of Mottu by the end of the year and reach 50,000 motorcycles by 2023. The company has evolved over the years and does more than just renting motorcycles. Mottu also provides its renters with insurance, maintenance, credit, 24-hour support, as well as a driving school for those who aspire to be a part of the community.
The latest raise of $20 million in 2021 by the company in its Series A funding enabled Mottu to develop its fleet and expand the company geographically. The company is planning to use the fresh capital to hire over 50 senior engineers and a chief technology officer adding to its team of 400 members.
the company also provides branded labels and tracking of motorcycles available which helps to provide an extra care layer and keep away from the reported robberies that are carried out by fake couriers. To date, the company has a zero-delinquency rate. If a customer refuses to pay the company, they block the bike, as this disables them from making money from the only source, the bike.
Purchasing a motorcycle is not an option for most of the workers (if not all) due to poor or no credit.
It is believed that drastic changes are about to take place in the way merchants streamline their online business in the economy after the pandemic. However, Mottu is building a strong business and a tech platform to develop online commerce and logistics in Brazil. It is positioned in a way to enhance the internet economy in Latin America.
To help the small and medium-scale merchants operate online, there are many SaaS solutions created in Latin America. However, the truth is that solid logistics require viable online commerce. Mottu is not the only start-up that is backed by a capital venture. The start-up is one of the few on a mission to support people with employment opportunities through the rental model.