VMove wants to raise USD 10m to expand ridesharing business to Brazil and Mexico, exec says

VMove, a Chilean ridesharing company that serves businesses, plans to raise USD 10m in exchange for a stake of about 15% to accelerate its growth in Chile, Peru, and Spain and expand to Brazil and Mexico, Commercial Director German Correa said.

The Santiago-based company has already met two venture capital rms, one from Chile and another from Argentina, said Correa. It expects to close the funding round in six or 12 months, he added.

VMove would prefer to strike a deal with venture capital or private equity rms with investment experience in ride-sharing companies and ground-passenger transportation service providers, he said.

It welcomes approaches from potential investors and M&A advisors with buyside mandates, said Correa, noting VMove does not plan to hire external advisors.

The company, which transports more than 45,000 passengers in Chile, has thus far nanced its growth with internal resources and a grant from Chile’s economic development agency Corfo, he said.

It plans to use the fresh capital to bolster its marketing and communication efforts in Chile, Peru, and Spain, he said. It will also use the new money to expand to Brazil over the next six months and Mexico afterwards, he noted.

VMove formed a Spanish joint venture in December 2019 with an undisclosed private investor. And in November it formed a joint venture with Travel Security, a Chilean travel group with operations in Peru, he noted.

Correa declined to share VMove’s  nancial information but noted its revenue increased  vefold last year on the back of COVID-19. The company expects to treble its revenue this year, he added.

A month ago, an undisclosed rm valued VMove at 7x-10x annual revenue, the executive said.

COVID-19 recon gured mobility in and around Santiago’s metropolitan area, increasing the need for businesses to provide safe transportation options to employees, said Luz Maria Garcia, director of the public-private initiative advocating for intelligent cities SeSmart City Santiago.

Mitsui, the Japanese industrial conglomerate, approached SeSmart six months ago to co-develop a ridesharing mobility services project in Santiago’s largest working-class community Puente Alto, said Garcia.

The value of the global ridesharing market is expected to grow because of COVID-19 to USD 212.6bn by 2026, according to market research rm Fortune Business Insights.

VMove offers ridesharing shuttle services to company employees, white-label services directly to businesses like hotels, and ridesharing services to private or large-scale events such as music concerts and weddings, said Correa.

However, as the pandemic forced many large-scale events to be cancelled, VMove focused on its shared mobility services for employees, he said.

Its platform uses arti cial intelligence, machine learning, and an algorithm to optimize travel routes, he said. It helps companies reduce up to 35% of the costs associated with employee transportation, he added.

VMove provides ridesharing shuttle services to more than 400 companies, including Anglo American, Sherwin-Williams Chile, and the local government of Recoleta, among others, said the executive.

Correa founded VMove in 2018. He owns a majority stake in the business with the rest held by his father and Director German, Finance Director Monica Gonzalez, and Business Development Director Mikhael Marzuqa, he said.

The company’s local competitors include Santiago-based ground-passenger transportation company Empresas de Transportes Transvip, he noted.

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