Report: Swedish startup Voi Technology’s valuation down by 63 percent

Correction: An earlier version of the article stated that Voi’s valuation had dropped to €77 million, which is incorrect. That is the valuation of investor VNV Global’s share (23.1 percent).

The valuation of the Swedish startup Voi Technology has dropped by 63 percent from the previous year, as reported by one of the company’s largest stakeholders, VNV Global.

Founded in 2018, Voi aims to improve urban mobility while creating less pollution, noise and stress for people. It partners with more than 100 cities across Europe to provide e-scooter and e-bike-sharing services. Furthermore, Voi is integrated with the cities’ public transportation systems.

VNV is one of Voi’s investors, owning 23.1 percent of equities in the startup. As of December 31, 2022, VNV values its stake in Voi at €76.98 million.

“Voi keeps on performing well, but the peer group we use when marking the company on a valuation model has collapsed this quarter, resulting in a large write-down of the company,” VNV chief executive officer Per Briloth said.

Last year, Voi posted its best Q4 performance ever — in terms of earnings and gross profit margins — despite falling in total valuation. The startup also recently inked its first-ever partnership in Sweden with Gävle to provide mobility services to the city’s residents.

The report shared that Voi maintained its position as a mobility service operator with the highest regulated market share on the continent. Many cities in Europe usually select one to three operators based on specific criteria, including parking, safety and sustainability. Voi won most of the tenders it joined.

VNV’s report also explained that Voi concluded the third quarter of 2022 near the full company EBITDA break-even. Voi then cut its fixed cost base at the end of last year to take the startup to EBITDA profitability in this fiscal year.

To cut its fixed cost base, Voi let go of 130 employees across Europe in December, which accounted for 13 percent of its total workforce at that time. The company had previously laid off 35 employees in June.

Voi explained that trimming its workforce was necessary to adapt to the tight capital market. The startup expects to receive no additional funding in the foreseeable future.

The Stockholm-based startup is also aiming to reduce its carbon footprint by 50 percent, saying it will only use Europe-made battery cells starting this year.