E-bike startup Zoomo has laid off 27 roles for the second time in six months, just weeks after major client Milkrun went bankrupt.
“Zoomo has made the difficult decision to reduce its overall headcount by 8%.
“It primarily affects employees at headquarters, as we are aligning central overhead costs with local interests.”
The layoffs come after the cash-hungry business has secured its balance sheet, and a $24 million funding round from previously undisclosed existing backers is poised to achieve profitability over the next 12 months. I hope we get enough runways for .
The round was led by Atlassian’s Mike Cannon-Brookes’ family VC fund Grok Ventures and the federally backed Clean Energy Finance Corporation. The company said the investment “underlines the strength of Zoomo’s underlying business model” in micromobility.
Zoomo cut 16% of its workforce, or about 65 people, in mid-October last year, co-founder and CEO Mina Nada said at the time: This stands for “strategic and cost-based alignment.”
Fast forward 28 weeks and fleet subscription ventures are again cutting cash burns amid the collapse of a number of food delivery startups, including client Milkrun, which closed in early April, and Deliveroo, which pulled out of Australia last November. bottom.
The venture began as Bolt as a sideline for Nada, a former Deliveroo and Mobike executive and former Bain & Co colleague Michael Johnson. They worked full time on him in 2019 and in August 2020 he rebranded to Zoomo.
Zoomo’s e-bikes are targeted for last-mile deliveries. Gig economy workers and businesses that deliver food and other products as part of a city’s supply chain. His customer base includes UberEats, Doordash and Domino’s and operates in his 16 cities on three continents including Brisbane, Sydney, Melbourne, Germany, UK, France, Spain, Canada and the US.
Since 2020, over 80% of Zoomo’s revenue has been generated outside of Australia, achieving 112% revenue growth in 2022.
A Zoomo spokesperson said that by 2022, the business will have positive gross margins and national-level profitability.
In just over two years of cheap, fast-flowing capital in the pandemic era, Zoomo has raised nearly $140 million, with $16 million in August 2021, and another $16 million in Series A eight months later. procured. It’s been just six months since Atlassian’s Cannon-Brookes and Scott Farquhar backed his $80 million Series B for Zoomo through family VCs Grok and Skip Capital in November 2022. bottom.
It took just three months before investors put in another $28 million in a Series B top-up.
Zoomo’s cap table also includes AirTree Ventures, Clean Energy Finance Corporation (CEFC), Contrarian Ventures, Maniv Mobility and New York VC Collaborative Fund. His MUFG Innovation Partners, his VC arm of Mitsubishi UFJ. SG Fleet, a local mobility solutions company. WIND Ventures, the VC arm of Latin American energy and mobility business COPEC. and Acuna Capital.
Over the past four years, Zoomo has streamlined its fleet and now offers two types of e-bikes for riders. It has a range of 60 km, a top speed of 25 km/h and a rental fee of $39 per week.
For businesses, there are e-bikes, two electric mopeds with a range of 90km and 160km, and an electric quad.