LogoSao PauloStarting a motorcycle rental business based on, It raised $30 million of equity in a Series B round of financing.
which company It aims to give independent carriers a way to work towards logistics and food delivery applications, and $10 million in debt financing has been secured. Most, if not all, workers have little or no credit, or bad credit, so buying a motorcycle outright is not an option.
Mottu began operations in early 2020 with a fleet of 200 motorcycles in its home city of São Paulo. By the end of the year, it was up to 1,000 motorcycles and $2 million in annual recurring revenue (ARR). Today, the startup operates in eight Brazilian cities and Mexico City with a fleet of 10,000 motorcycles. It increased ARR 5-fold in 2021, which means it reached $10 million in ARR by the end of last year, according to CEO and founder Rubens Zanellato.
Verde Asset, one of Brazil’s largest investment management firms, has provided the debt portion of the company’s latest financing. Zanillato said that capitalMottu’s plan is to quadruple its fleet by the end of the year and reach 50,000 motorcycles by 2023.
Over time, Mottu has developed its model and does more than just rent motorbikes. like that Provides credit, insurance, maintenance, and 24-hour support to tenants. And for those looking to become couriers, Mottu also offers a driving school.
The latest increase comes on the heels of a $20 million Series A financing in early 2021, which Zanellato said allowed the company to significantly grow its fleet, expand geographically and create its own delivery offerings — which are used by more than 1,000 retailers. Motto plans to use its new capital in part to hire more than 50 senior engineers, as well as a chief technology officer (CTO), to add to its existing 400 staff.
Notably, Base Partners and Crankstart – a San Francisco-based family business founded by Harriet Heyman Sequoia Capital Partner Michael Moretz – Co-led the equity portion of the company’s financing. Tiger Global Management has participated in both Mottu’s Series A and Series B tours.
For the uninitiated, Moretz supported the likes Google, LinkedIn, PayPal, Yahoo, Stripe, Klarna, and Getir. Crankstart was formed to “address social issues and the causes behind them”.
In fact, the Moto model aims to solve a number of social problems in Latin America: unemployment and crime.
“Our clients are out of work and have very poor credit ratings,” Zanellato told TechCrunch. “These people cannot go to a dealer store and buy or rent a motorcycle to work as a seller. We solve all the bottlenecks that couriers face on their business trip. We are trying to make our business model a no-brainer decision for the postal company.”
Mottu startup customers pay a weekly rental fee of about $150 per month, which has led the startup to describe its offerings as “devices as a service.” On average, Zanellato said, her clients earn more than the minimum wage — $300 a month in Brazil.
Also, in Brazil, there has been a rise in reported burglaries carried out by fake couriers. Zanellato said Mottu’s branded and tracked bikes “represent an extra layer of safety for everyone.”
What about the risks of leasing for people with low credit scores? Incredibly, the company so far has zero late payment rates.
If they don’t pay us, we ban the bike,” Zanellato told TechCrunch. “Because they need a motorcycle to keep making money, they want to pay us.”
Fernando Spinola, Partner at Base, told TechCrunch via email that he views Zanelatto as “a frugal and humble founder who was able to dream big while keeping his feet firmly on the ground with his eyes focused on creating a capital-efficient company.”
“Robbins took a fresh approach to the last mile problem and created a show-focused solution,” he added. “By putting Postman at the center, Mottu is not only doing a good job through them, but also building a strong company and technology platform to boost online commerce and logistics in Brazil.”
He also believes that “dramatic changes are underway in how merchants are simplifying their online commerce in a post-pandemic economy.” As such, Spnola sees Mottu in a unique position to “lead the way as a central piece of the Internet economy in Latin America”.
He added, “Many SaaS solutions are being created in LatAm to help the small and medium merchant to operate online, and the fact that there is no viable online commerce without reliable logistics is the hardest part of the equation.”
Mottu isn’t the only venture-backed Brazilian startup on a mission to help people find employment via a rental model. Sao Paulo-based Kovi operates an “all-inclusive” car subscription model on the understanding that more people in Latin America will work for passenger carriers if they can afford to operate the necessary vehicle. Last August, the startup raised $104 million in a Series B funding round.
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