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Gett completes $100 million round to boost corporate platform

The corporate ground travel company raised an additional sum of $76 million on top of the $24 million it raised last year and intends to use the funding to expand its global presence, especially for its enterprise service

Meir Orbach 09:0521.07.20
Global corporate ground travel company Gett Inc. announced Tuesday it has completed a $100 million funding, having raised an additional $76 million.

 

According to the company, the vast majority of the round, led by its existing investors as well as unnamed new investors, was raised in equity and a small portion of it in credit and bonds. The round was made at a $1.5 billion valuation.

 

A user hails a taxi using Gett's app. Photo: Gett A user hails a taxi using Gett's app. Photo: Gett
The round first stage of the round was disclosed in the 2019 financial report of Stockholm-listed venture capital firm Vostok New Ventures Ltd., which holds a 5.28% stake in the ride-hailing company. The report stated Gett raised $24 million in equity in 2019.

 

According to Mark Oun, CEO of Gett Israel, Gett is currently profitable in Russia, Israel, and the U.K., serving as an indication that its business model is lucrative.

 

“In the first quarter of 2021, the whole company is expected to turn a profit and make money,” Oun said in an interview with Calcalist. “The new funding is a luxury that would allow the company the flexibility it needs to expand around the globe,” he said.

 

“We have reached a very significant milestone in the life of every startup and, as of today," Oun said, "the company is no longer dependent on raising money as it is making cash.”

 

Gett CEO Mark Oun. Photo: Orel Cohen Gett CEO Mark Oun. Photo: Orel Cohen
"In the U.S. we are completely covered by Lyft, and we have high coverage in many locations in Europe and Asia, including Israel and London,” Oun said. “A lot of companies are joining our new corporate platform,” he added.

 

With the investment, Gett intends to expand globally, with the intention of serving its business clients anywhere in the world through a single app. According to Oun, Gett aims to provide companies with ride and delivery services locally as well as during business trips.

 

A recent report by Vostock indicated Gett suffered a drop of at least 75% in private transportation and around 50% decrease in corporate services, but a sharp increase in its delivery business meant its value only dropped by 5% as a result.

 

“Being fully funded and reaching a key milestone in our profitability journey, is an important step for the Company. The proceeds will help us grow our unique corporate SaaS platform internationally, while we consider an IPO in the future, to further accelerate our expansion,” said Gett CEO Dave Waiser. ““The way people move around in cities is changing dramatically as a result of Covid-19 and businesses are seeking to optimise costs and to put in place efficient and safe ground travel solutions for their employees. Our mobility software is helping businesses thrive by empowering people to be their best on the go.”

“The completion of the fundraising during the pandemic is a clear expression of confidence by our shareholders and new investors in Gett’s vision to focus on the corporate market and its plan to expand globally, as well as in the company’s strong operational and financial performance.”Gett Chairmen Amos Genish said in a statement.