Flashpoint participated in a $12-million Series A funding round by Whizz

Published in
June 6, 2024
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The funding will enable Whizz to grow its fleet and expand its market-leading platform acrossthe US to tackle critical issues such as battery fires and worker disparities in the deliveryspace.

New York, NY — Whizz, an e-bike subscription platform for last-mile delivery drivers, hasraised $12 million in a Series A funding round led by LETA Capital, with participation fromFlashpoint, and others. The round takes the company’s total funding to $20M, fueled by 3.5xyear-over-year growth and annual recurring revenue (ARR) of more than $8M.

These funds will enable Whizz to provide more delivery workers across the United Stateswith the best tools for the job. Many of these underserved workers are immigrants without acredit history to gain approval for a loan, which prohibits them from accessing affordable andsafe electric transportation.

In New York, the company’s primary market, battery-related fires have risen by almost 800%since 2019, with poor-quality electric bikes putting workers and citizens at unnecessary risk.With state regulation having made 90% of e-bikes illegal, Whizz is one of few companiesthat provides vehicles wholly compliant with these strict measures. As well as safeguardingagainst disruption to the customers’ earnings — with workers making an additional$1,170/month on average — the company is creating a safer working and living environmentin New York. This has helped Whizz to attract the attention of DoorDash and Grubhub,becoming an official e-bike partner of the food delivery giants, which hold a combined marketshare of 75%.

“Since its launch in 2022, Whizz has sped ahead of its competitors by building the safest andmost reliable delivery e-bike on the market, and creating powerful software that has allowedthe business to grow exponentially without breaking down. The moment has come when themarket is moving from the early stage into maturity. Regulatory pressure is increasing, whichwill make it difficult for new businesses to enter the market—but it’s welcomed news forestablished companies such as Whizz, and we fully intend to stake our claim as the numberone e-bike rental service in the US,” — said Mike Peregudov, Co-founder and CEO atWhizz.

Denis Mosolov, Managing Partner of Flashpoint Growth Debt commented: “We believe thatWhizz built a highly scalable platform allowing it to provide an affordable, yet safe andsustainable transportation solution for delivery workers. We are thrilled to be supportingWhizz in this round and look forward to this extremely capable team taking Whizz to the nextlevel.”

“The hype around micromobility and fast delivery has passed, and most VCs have pivoted toother industries. However, we strive to focus on companies with fundamental business valuein the markets not inflated by an excess of capital. Against this backdrop, Whizz appears tobe a very promising company with a strong team of founders who work extremely efficientlyand are successfully managing the startup's scaling. Therefore, we believe that Whizz is a hidden gem that will continue to surprise the market,” — said Sergey Toporov, Partner atLETA Capital.

To accelerate its growth, Whizz raised a combination of equity and debt funding. Thesefunds will be used to purchase additional vehicles, including all-new electric mopeds. Inaddition, the company, which currency operates in New York and New Jersey, will expandoperations across the US starting in 2025. Whizz intends to grow its fleet of 2,500 e-bikes —which offers 8-hour battery life, GPS trackers, built-in anti-theft systems, and on-demandmaintenance and repairs — to more than 200,000 vehicles by 2030.

This will allow thousands of immigrant workers to improve their earnings and expenses — agoal shaped by Whizz’s co-founders Mike Peregudov; Alex Mironov; Ksenia Proka; andArtem Serbovka, a team of migrants who have experienced the difficulties of relocatingthemselves before co-founding the company in 2022.

About Whizz

Whizz is an e-bike subscription service for delivery drivers in the US, founded in 2022 byAlex Mironov, Ksenia Proka, Artem Serbovka, and Mike Peregudov. The goal is to providesafe and affordable electric bike transportation to every delivery worker in the US. Thecompany partners with DoorDash, Grubhub, and other delivery enterprises, offering$159/month rental subscriptions to independent delivery workers on these platforms.Whizz manages a fleet of 2,500 e-bikes, primarily in New York and New Jersey, with agrowth rate of 250% year over year.

About Flashpoint

Flashpoint, headquartered in London, is an international tech investment manager with c.$500 million AUM and 3 strategies: VC, Growth Debt, and Direct Secondary. Focused onglobal tech companies originating out of Europe and Israel, to date the firm has made 68investments and completed 19 exits, including the sale of its stakes to Apple, GeneralAtlantic, PSG, Boathouse Capital, and Blue Star Innovation Partners. Our investors includemore than 150 FO and HNWIs.

About LETA

LETA Capital is a venture capital firm that invests in early-stage, revenue-generating ITstartups. The firm targets entrepreneurs who disrupt their industries and find innovative waysto scale their businesses. LETA Capital's investment portfolio spans various sectors,including Software Development, Big Data and Analytics, AI technologies for diverseindustries, Transportation, and XR.

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