Tier raises $60 million in asset-backed financing from Goldman Sachs to fuel e-scooter fleet expansion

Tier has secured $60 million of asset-backed financing from Goldman Sachs.

The debt facility from the investment banking, securities and investment management firm is the ‘first’ of such scale in micromobility, said Tier, and will fuel the operator’s e-scooter fleet expansion for 2021.

This follows Tier’s recent $250 million Series C funding round led by SoftBank Vision Fund 2, and also follows news that Tier, along with Dott Lime, has been selected to take part in London’s e-scooter trial.

As well as helping to extend Tier’s international coverage across strategic growth markets and enabling investment in a multi-modal fleet of electric scooters, bicycles and mopeds, the new capital will drive the expansion of the Tier Energy Network.

With this innovation, battery charging stations will be installed in retail stores across Europe and the Middle East to power electric vehicles in a way that drives operational efficiency whilst giving the high street a financial boost and enabling users to enjoy free trips.

“Even amid a global pandemic, TIER has established a proven track record of profitable unit economics and asset longevity,” said Ben Payne, managing director at Goldman Sachs. “We are excited to help the European leader extend sustainable mobility to more people across the world.”

Alex Gayer, chief financial officer at Tier, added: “The size of this highly scalable asset-backed debt facility is a game-changing first in micromobility, accelerating our expansion and cementing our market leadership in Europe. This facility leverages our recent equity raise and will enhance our capital-efficient growth.”