E-scooter startup Lime raises $523 mln, eyes going public in 2022

Lime, an urban mobility firm, announced on Friday that it had secured $523 million from investors to expand production of its latest e-scooters and e-bikes and that the company’s senior executive said the company plans to go public in 2022.

The money raised from convertible debt and term loan financing include new funding from ride-hailing operator Uber (UBER.N), which became an investor in 2020, according to the San Francisco-based startup. Lime Chief Executive Officer Wayne Ting said the investment round was “extremely oversubscribed.”

“I believe it’s an acknowledgment that Lime has established itself as the clear leader in this market,” Ting added. “It’s a significant milestone that demonstrates investor confidence in Lime’s plans to go public, and we’ll utilize it as a springboard to go public next year.”

Ting told Reuters that he hoped to list in the summer of 2022, depending on market conditions. He stated he was “neutral” about whether the company would pursue a typical initial public offering (IPO) or a combination with a special purpose acquisition company as a way to go public (SPAC).

Lime has opened offices in 80 additional cities this year, bringing the total number of locations to more than 200.

The scooter rental industry is projected to consolidate more as larger operators seek greater size to deal with city rules.

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