Softbank, Mubadala in USD 200m round for Tier

Softbank is investing via Softbank Vision Fund 2. New investors joining at the first close of the round also include impact fund M&G Investments. The company said in a statement that it was keen to invest in Tier due to the company’s ESG performance.

Further existing investors include Northzone, Goodwater Capital and White Star Capital.

The company is now valued at USD 2bn.

The round comprises both debt and equity, according to a statement. The debt component is intended to serve the company’s capex needs.

Following the investment, Tier intends to pursue strategic investments and acquisitions, in addition to the continued expansion of its network.

The funding round contributes further to the record amounts of venture and growth activity seen in the DACH region in 2021 so far. The past week has seen grocery delivery startup Gorillas and digital bank N26 each raise around USD 1bn, bringing the total raised in the DACH region to almost EUR 15.4bn, as reported. This represents almost double the record amounts raised in venture and growth deals in 2020.

Previous funding
In October 2018, SpeedInvest and Point Nine Capital backed a USD 2m Series A round for Tier. Northzone Ventures led a further USD 25m round later that month, investing via Northzone VIII. Kibo Ventures, Speedinvest and Point Nine Capital also backed the round.

Mubadala Capital and Goodwater backed a USD 60m Series B round for Tier in October 2019, joined by Axa and Evli Growth Partners.
RTP Global and Novator led a USD 40m round for Tier in February 2020. Existing investors also participated. At the time, the company operated in 55 cities across 11 countries.

Softbank led a USD 250m round for Tier in November 2020, joined by existing investors including Mubadala Capital, Northzone, Goodwater Capital, White Star Capital, Novator and RTP Global. According to press reports, the round valued Tier at almost USD 1bn.

Tier has now raised USD 660m in debt and equity funding in total, according to a statement.

Company
Founded in 2018 and headquartered in Berlin, Tier is a micro-mobility startup that specialises in e-scooter hire schemes. Tier is present in 150 cities across 16 countries in Europe and the Middle East. The company has won a tender to operate London’s first e-scooter hire scheme.

People
Tier – Alex Gayer (CFO); Lawrence Leuschner (CEO, co-founder).
Mubadala Capital Ventures Europe – Amer Alaily (director).
M&G Investments – Niranjan Sirdeshpande (director, Catalyst Investment)

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• Topics
• Expansion
• DACH
• Consumer
• Germany
• Venture
• Northzone