HumanForest, a London-based micromobility startup, has raised £12m as it looks to expand its e-bike service across the UK capital.
Founded in 2020, HumanForest has rolled out its rental e-bikes to nine London boroughs. The company differentiates itself from competitors like Lime by offering users 10 minutes of free cycling per day.
HumanForest said the income brought in from its advertising technology platform allows it to offer the promotion to customers.
“Sustainable micromobility is a force for good in cities but to bring meaningful change it must be affordable and accessible,” said HumanForest founder and CEO Agustin Guilisasti.
Now backed by new funding, HumanForest will look to continue the expansion of its service range.
“This funding round has accelerated our expansion, bringing affordable and sustainable mobility to even more Londoners, whilst enhancing our capital-efficient approach to growth,” added Guilisasti.
The funding is made up of a £5m project finance facility from Triodos Bank UK, which will be used to double the current fleet of bikes, and a £7m equity investment to make further developments to the user app and advertising platform.
“As a bank that is looking to finance systemic transformation, we have clear ambitions to expand our portfolio into pioneering projects and financing structures to support decarbonisation solutions,” said Amandine Tetot, head of project finance at Triodos Bank UK.
“HumanForest is a fantastic example of a company that is innovating shared modes of transport to tackle urban pollution while increasing access to affordable transport – thereby contributing to more liveable cities.”
HumanForest previously raised £2.3m in a funding round back in August 2021.
The boost for the micromobility startup comes amid government and consumer pressure. E-scooters, a popular sub-product in the industry, were recently banned from the streets of Paris after citizens voted overwhelmingly in favour of removing the vehicles from the city.
Rental e-bike and e-scooter startups have also struggled to achieve profitability despite raising hefty sums from investors.
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