While micromobility companies around the world are at a standstill and facing issues such as bankruptcy, shut down and layoffscalled a Seoul-based operator of shared e-scooters and e-bikes Gbike is preparing to go public in Korea and is reviewing takeover targets.
In an exclusive interview with TechCrunch, Walter Yoon, CEO and founder of Gbike, said that the startup is currently in discussions about acquisitions in the micromobility industry to increase its market share ahead of its planned initial public offering. aiming for early 2025. “Details have not been worked out yet, but we are currently looking at about three to five targets for acquisition,” Yoon said, adding that he has not decided how many acquisitions to complete.
Gbike acquired a local micromobility platform called ZET from Hyundai Motor for an undisclosed amount last year to strengthen its technological synergies.
The startup recently closed its Series C round of approximately $9.1 million, equivalent to KRW 11.9 billion, in the form of a convertible note, bringing its total raised to $21 million since its 2017 inception.
The seven-year-old start-up boasted profitability in stark contrast to its global peers. Gbike posted EBITDA of $40 million and revenue of $13.7 million in 2022, Yoon said. The startup expects to generate approximately $50 million in revenue, up 25% year-over-year, in 2023, with 30% of EBITDA and 10% of EBIT in 2023.
“We improved profitability through deep vertical integration from logistics and operations to manufacturing,” Yoon told TechCrunch. “Based on this fully integrated capability, we set our vision to innovate the micromobility ecosystem through battery-[swapping] infrastructure. And that vision resonated with investors.”
The seven-year-old company started the battery exchange station project two years ago. Last month, the company partnered with Zentrophy, a Korean battery exchange infrastructure company, to build its first battery exchange station in South Korea this year. It has an ambition to build 4,000 stations across the country by 2030. After becoming economically viable with its swappable battery infrastructurethe company will allow other proprietary personal mobility manufacturers to adopt Gbike’s battery system for their vehicles.
One of the things that sets Gbike apart from its competitors is its ability to build its own vehicles — e-scooters, e-bikes and batteries, Yoon said. Additionally, unlike peers that outsource field operators, who pick up vehicles and deliver batteries, Gbike’s full, integrated operations team is its other differentiator, which helps the startup optimize the communication channel from field operators to IT developers for better performance, Yoon explained.
Gbike launched its own e-bikes in May last year and now operates a fleet of 35,000 e-bikes. It has a fleet of 100,000 electric scooters and 3.4 million users in South Korea. Last year, it also introduced its own battery to fit not only e-bikes, but also e-wheelchairs, e-strollers, e-scooters and e-mopeds. Gbike, which has 160,000 rechargeable batteries, says about 50,000 batteries are used every day.
The startup continues to invest in international markets. It launched electric mobility service in Bangkok and Phuket, Thailand, in March and October, respectively. In the first quarter of this year, Gbike plans to launch its service in Vietnam. Although the startup’s main focus markets are South Korea and Southeast Asia, it is testing the US market. It was released in Memphis, Tennessee in July and in Los Angeles and Guam in December. When asked how she might navigate the turbulent micromobility market in the US, Yoon said she’s testing and learning the new market that’s completely different from the markets she’s been in.
The company operates a fleet of 2,000 e-scooters in Thailand and another fleet of 2,000 e-scooters in the U.S. Yoon said this year’s target for Gbike is turning profitable in Southeast Asia and the U.S.
Gbike has 310 employees in December, a 34.7% increase from 230 in February last year.
