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Modus Mobility looks to raise equity funding for growth in Europe – CEO


Modus Mobility, a Lithuanian Vehicle-as-a-Service provider, is looking to raise equity funding to scale its growth in Europe, CEO and Chairwoman Ainė Martinkėnaitė-Martyniuk told Mergermarket. 

The company is looking to raise a nine-digit-euro amount in exchange for a minority stake, with a view to finalise an agreement during this year, Martinkėnaitė-Martyniuk said. She declined to comment further on its valuation, but said that it will be based on its profitable business model in the three Baltic countries, as well as further growth potential. Its financial advisor is Clearwater International, and it expects to select an external legal advisor in addition to its in-house legal team, she added. 

The company is interested in attracting a private equity investor, planning to or already investing in the mobility space; or a strategic player with potential synergies with its business, she said. An investor should also have a similar business philosophy and risk appetite to its own, she added. Investor sentiment is now towards businesses with positive cash-flows, Martinkėnaitė-Martyniuk said, adding that Modus sees space for growth in such an environment. 

The company’s businesses, which include car-sharing service CityBee and car-subscription service MyBee, generated close to revenue of EUR 90m in 2021, a 60% increase on 2020’s figures, according to a press release from its owner Modus Group, a Lithuanian diversified holding. Its mobility businesses generated EUR 9.3m EBITDA in 2021, the press release added. Larger round to follow Modus Mobility will use the proceeds to enter new European markets in 2023-24, said Martinkėnaitė-Martyniuk, who is also Modus Group's chairwoman.

The company then expects to raise a larger investment round to fund its growth strategy in 2026, she said. She did not elaborate on its future fundraising round, adding that the business first needs to get up to speed with its earlier growth plans. She declined to disclose which new markets Modus Mobility will seek to enter with its car-sharing and subscription services in 2023-24, but said that in addition to equity funding, it is also looking to raise debt funding to expand its car fleet in Europe. 

Founded in 2012, subsidiary CityBee provides car sharing services in Lithuania, Latvia and Estonia, and had a fleet of 2,722 cars in 2021, according to Modus Group’s FY21 report. Car-subscription service MyBee was launched in June 2021 in Lithuania and had 800 subscription contracts within its first year of operations, Martinkėnaitė-Martyniuk said, adding it is looking to launch in Estonia and Latvia this year, using internal resources. 

Modus Mobility’s total investments were close to EUR 26m in 2021, including enlarging CityBee’s fleet and launching MyBee, according to the Modus Group’s press release. Modus Mobility has a team of around 200 employees, Martinkėnaitė-Martyniuk said. 

Modus Group, which is also active in renewable energy, automotive business and investment management, generated EUR 458m consolidated sales revenue in 2021, compared to EUR 469m in 2020, according to its press release. The group’s EBITDA amounted to EUR 42.8m in 2021. Modus Group is owned by its supervisory board member Kęstutis Martinkėnas, as reported.

by Agnė Mažeikė in Vilnius

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