Israeli on-demand mobility company Gett has raised $100 million from all its existing investors as well as some undisclosed new investors. The company said that most of the funds raised were in equity but declined to provide precise numbers. The financing round was completed at a company valuation of $1.5 billion and said that the funds were raised to enable growth.
Gett said that the new funds would allow restructuring to enhance its focus on its business customers. Gett provides services to tens of thousands of business customers where the business model and operations are different than working with the public via its taxi hailing app. Gett has also been collaborating with Lyft since the end of 2019, whereby Gett connects its customers with Lyft's drivers. Gett provides the tech platform.
Gett has raised $850 million since it was founded. The company has had a positive cash flow since the end of 2019 but its valuation has not risen over recent quarters.
Gett will also continue to nurture its client base through the taxi passenger hailing app, which it operates in Israel, the UK, Russia and other places, where it is profitable. But expanding to new markets on this model is very expensive and very competitive and thus Gett is focusing more on the business sector. Gett hopes this strategy will bring it closer to the IPO it has been seeking for some time.
Published by Globes, Israel business news - en.globes.co.il - on July 21, 2020
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