Volt Lines, a domestic startup that took back the management of the company from Swvl, has completed 30% of its newly targeted investment round, with its official statement today.
Domestic startup Volt Lines announced today that its investment round has reached 30% of the targeted funding amount.
Turkiye-based Scaleup’s funding target for the round provides twice the amount needed to achieve its short-term plans to generate positive free cash flow by the end of 2023.
“Plenty of capital to achieve profitability”
Ali Halabi, founder and CEO of the startup: “After successfully retaking control of the company in January, we are pleased to announce that Volt Lines is well-capitalized to act effectively in current market conditions and is well on its way to generating positive free cash flow throughout the year.”
Volt Lines took back control of shares of the Netherlands-based holding company from Swvl on January 16, 2023, with a new SPA canceling last year’s $65 million sale deal.
Since the beginning of 2022, Volt Lines has nearly tripled its monthly recurring revenue and increased its profitability percentage by more than 25 percentage points. While the company is on track to achieve positive free cash flow by Q4 2023, it expects to double its revenue again in 2023, thanks to strong return-to-office demand and successful expansion into the school segment.
Growth Potential
Volt Lines manages approximately 1% of the $2 billion corporate and school transportation market, concentrated in Istanbul, Turkiye’s largest city with a population of 20 million and where the company’s headquarters and R&D center are located. The company aims to achieve 10% market share by 2027 and plans to switch to an all-electric fleet by 2030.
Volt Lines has operations in Istanbul, Ankara and other cities in Turkiye.
Growth Abroad
“Our short-term goals are not limited to Turkiye. Now, by following a dual strategy, we will continue our profitable growth in the TaaS segment in Turkiye and offer our SaaS product abroad.”
Volt Lines aims to open its 5 years of experience in B2B software development to other operators abroad who want to digitize their operations and transform their customer experiences.
Volt Lines, which provides services both as a software developer and operator in Turkiye, is in a good position to be a great technology partner for players abroad where a win-win relationship can be established. Volt Lines manages hundreds of service lines and transports thousands of people every day.
“We use the know-how fed from this field to continuously improve our software power and we believe our technology is ready to hit the world stage,” says Halabi.
Possible markets where this software could be made available to local partners include Pakistan, Saudi Arabia, the United Kingdom and the United Arab Emirates, where Volt Lines is already in the Abu Dhabi Global Market (ADGM).
Investor Sentiment
Tamer Bazzari, CEO of Dubai-based Genero Capital, who has just joined the company’s board of directors, said in a statement. “Many investors felt that a proven strong team, attractive market opportunity, strong revenue growth and a clear path to positive cash flow in 2023 made this opportunity very attractive.”
Ersan Ozturk, Co-Founder and CEO of Turkiye’s largest corporate car rental company Hedef Filo and Turkiye’s largest car sharing company TikTak, said, “We have full confidence and belief in Volt Lines’ business model, and we believe in the vision of the management. Volt Lines has shown great improvement in company profitability and we are always looking for ways to strengthen our stake in the company. This investment round has given us a great opportunity to do just that.”
Source: Egirisim / Prepared by Irem Yildiz