Mobility application 99 has announced a significant R$ 45 million investment into Yvy Capital's Two-Wheeled Electromobility Fund. This injection of capital makes the fund operational, placing 99 alongside iFood as an anchor investor in a major push to accelerate electric vehicle adoption in Brazil. The initiative aims to decarbonize the nation's vast motorcycle fleet and foster a robust domestic industry for electric mobility.
A Strategic Push for Electrification
The investment from 99, a subsidiary of China's Didi Chuxing, matches a previous commitment from iFood, solidifying the fund's financial foundation. This collaboration targets Brazil's fleet of 30 million motorcycles, where electric vehicle penetration is currently below one percent. The fund has set an ambitious goal to facilitate the production and commercialization of 600,000 electric two-wheelers by 2035.
Managed by Yvy Capital, a firm specializing in infrastructure and energy transition, the fund has a total fundraising target of approximately R$ 300 million. Beyond its primary vehicle goals, the project is projected to stimulate over R$ 5 billion in new investments across Brazil over the next decade. This capital is essential for developing a comprehensive national supply chain for electric mobility solutions.
Economic and Environmental Benefits
A key motivation for this initiative is the substantial cost savings it offers to riders, especially delivery professionals who depend on motorcycles for their income. Thiago Hipólito, Director of Innovation at 99, highlighted that electric vehicles can lower fueling and maintenance expenses by up to 60%. This efficiency directly increases the net earnings for the platform's nearly one million active motorcyclists.
The environmental advantages are equally compelling, as a gradual fleet replacement could cut CO2 emissions by as much as 14.25 million tons annually. With Brazil's motorcycle fleet expected to grow to 40 million by 2030, this transition is vital for achieving national sustainability targets. The extended lifespan of electric vehicle components also offers a more favorable long-term asset for investors.
Building a National EV Ecosystem
Yvy Capital's strategy goes beyond vehicle financing, employing what it describes as a “merchant bank” model to construct an entire industrial ecosystem. Bruno Aranha, a partner at Yvy, explained that the fund will support multiple stages of the value chain. This includes investments in motorcycle and battery manufacturing plants, charging infrastructure, and innovative fleet management startups.
This comprehensive approach is designed to foster a self-sustaining market rather than relying on a single company to build the ecosystem alone. The fund will benefit from the strategic guidance of both 99 Brasil and Didi Investments, its parent company's venture capital arm. This dual perspective merges operational expertise with a sharp focus on financial returns to guide investment decisions.
A Collaborative Industry Effort
The partnership between 99 and iFood is further strengthened by their mutual involvement in the Alliance for Sustainable Mobility. This coalition, comprising 31 companies, has already channeled over R$ 410 million into energy transition projects since its formation in 2022. The alliance concentrates on developing infrastructure, creating financing solutions, and promoting the widespread adoption of electric vehicles.
In conclusion, 99's R$ 45 million investment marks a pivotal moment for Brazil's electromobility sector, activating a fund poised to reshape the industry. This strategic alliance with iFood and Yvy Capital is set to create a resilient national ecosystem for electric two-wheelers, delivering significant economic benefits to riders. The initiative represents a powerful, market-driven strategy for achieving both industrial advancement and meaningful environmental progress.