FlixMobility raises over $650M in Funding at $3B Valuation planning further global expansion
++ FlixMobility gears up for global expansion, new investor Canyon Partners
++ New financing of $650M+ from existing investors and founders, increased valuation at $3B+
++ Establishing green, affordable intermodal offer with FlixTrain in Europe
++ Further expansion in US, Portugal, UK – strengthen position in France, Turkey and Eastern Europe
Munich June 2, 2021 – FlixMobility has successfully closed its financing round G and gained US investor Canyon Partners. The structured funding round, based on a mix of equity and debt, totals more than $650 million. With Canyon Partners, FlixMobility has gained another strong partner for its future global expansion in existing and new markets. The leading tech-mobility company for intermodal and sustainable mobility signals a clear acceleration of strategy, setting the course for future plans with a strong financial profile.
The company's new valuation of more than $3 billion is significantly higher than the valuation of the last financing round in 2019, underlining the strong investor support by its founders, existing investors include General Atlantic, Permira, TCV, HV Capital, Blackrock, Baillie Gifford and SilverLake for FlixMobility and the success of its unique business model.
"The recent financing is a strong sign for the future and for our vision to provide sustainable mobility with FlixBus and FlixTrain to people all over the world," said Jochen Engert, founder and CEO of FlixMobility. "With the closed financing, we are well positioned for future international growth and expansion plans with FlixTrain and FlixBus."
The news marks a turning point for the company to double down on its future strategy, even as it continues to balance the current situation. The company has successfully navigated the pandemic through closely managed network adjustments and heavy investments in technology and automation. Now, FlixMobility is particularly focused on further growth through expansion in new and existing markets as well as expanding its train business in Germany, Sweden and beyond, for which it relies on the EU to further strengthen the Single Market based on fair competition that allows new market entrants to offer even more sustainable collective transport.
Growth in existing markets, expansion into new regions, market leadership in US and UK targeted
This investment will support FlixMobility's ambition to offer the largest network in the US, the UK and Portugal, and to further expand its leading position in Turkey, France and Eastern Europe. Additionally, the company is already planning to expand into new markets following a pandemic-related break.
"We are now switching from defense to offense. Our clear goal is to become the market leader in all markets in which we are present. This also applies to new markets such as the UK and Portugal or the USA, where we are currently still number 2 or 3," says André Schwämmlein, founder and CEO of FlixMobility. "We want to make green, affordable mobility accessible to as many people as possible, the United States in particular offers immense potential for this. We see the U.S. as our largest market in the future. But, post-pandemic, we will also strengthen our market position in major European markets to give people the opportunity to travel again. To make this happen, every single country as well as the EU needs to support fair competition and address the lack of equal access to European markets."
The fact that FlixMobility has managed the pandemic and comes out strong is evident not least in its expansion after the first wave in spring 2020. Last summer, the mobility provider launched its first international routes to the Baltic countries and began building national networks in the UK and Portugal.
FlixMobility sees great potential for expanding its intermodal offering
In addition to the global FlixBus network in 36 countries, FlixMobility has also been operating long-distance trains with FlixTrain since 2018. Currently, the company already offers FlixTrain connections throughout Germany. In line with the European Year of Rail, FlixTrain launched the first green trains in Sweden at the beginning of May 2021. The company sees the future of collective travel in the interplay between long-distance trains and buses, which will manifest in all present and future strategic decisions.
André Schwämmlein: "In 2019 alone, 62 million passengers traveled with us. Now we will build on this success. We are confident that we will be able to offer green mobility to even more people in the coming years - through an expanded offering, on rail and road, in existing markets, as well as through expansion into new countries and continents."
FlixMobility is a mobility tech company, offering new alternatives for convenient, affordable, and environmentally friendly travel via the FlixBus and FlixTrain brands. Thanks to a unique business model and innovative technology, the startup has quickly established Europe's largest long-distance bus network and launched the first green long-distance trains in 2018 as well as a pilot project for all-electric buses in Germany and France. Since 2013, FlixMobility has changed the way people have traveled throughout Europe and created thousands of new jobs in the mobility industry. In 2018, FlixMobility launched FlixBus USA to bring this new travel alternative to the United States.
From locations throughout Europe and the United States, the FlixTeam handles technology development, network planning, operations control, marketing & sales, quality management and continuous product expansion. The daily scheduled service and green FlixBus fleet is managed by bus partners from regional SMEs, while FlixTrain operates in cooperation with private train companies. Through these partnerships, innovation, entrepreneurial spirit and a strong international brand meet the experience and quality of tradition. The unique combination of technology start-up, e-commerce platform and classic transport company has positioned FlixMobility as a leader against major international corporations, permanently changing the mobility landscape.