London-based micromobility firm Forest has successfully closed a £40 million Series B funding round, signaling strong investor confidence in the shared e-bike sector. The capital injection is earmarked for significant expansion across the UK capital, where the company has already established a substantial presence. This funding milestone underscores the growing demand for sustainable urban transportation solutions in one of the world's most active markets.
Details of the Investment Round
The total £40 million round is an extension of a previously announced £13 million, now supplemented by an additional £27 million in capital. A notable part of this new funding includes a minority stake from OKAI, Forest’s primary hardware supplier, indicating a deeper strategic partnership. The round also saw continued support from existing backers B8 Venture Partners, Fen Ventures, and Güil Mobility Ventures, alongside financing from Fintex Capital.
Charting Impressive Growth
Since its launch in 2020, Forest has experienced remarkable growth, quickly becoming a key player in London's transport ecosystem. The company now serves 1.5 million users and facilitates an impressive two million rides each month across its network. Its operational footprint spans 18 London boroughs, recently bolstered by securing a sole-operator contract for the borough of Richmond.
Strategic Plans for Expansion
Forest has outlined a clear strategy for deploying the new capital to enhance its service and infrastructure within the city. The investment will fuel further operational expansion and the development of more dedicated parking bays, adding to the 2,600 already in place. Additionally, funds are allocated for technological advancements, focusing on improving the mobile app, parking compliance, and overall rider safety features.
A Focus on Sustainable Operations
Co-founder and CFO Jose Eluchans highlighted the company's disciplined approach as a cornerstone of its success. He stated that Forest has built one of Europe's largest e-bike platforms by prioritizing capital efficiency and sustainable operational practices. This strategy ensures the company can scale responsibly while delivering tangible value to the city of London and its residents.
Reinvesting in the Community
Eluchans also emphasized the company's commitment to its home city, noting that high vehicle utilization justifies its use of public space. As a single-city operator, Forest is uniquely positioned to reinvest directly into London's transport network and support the city's shift to cleaner mobility. The company already powers its fleet with zero-emissions energy and offers users up to 30 minutes of free riding daily.
This substantial £40 million investment solidifies Forest's pivotal role in shaping the future of urban mobility in London. It not only provides the resources for continued growth and innovation but also reflects a broader market trend favouring sustainable and efficient transport alternatives. As Forest expands its reach and enhances its services, it is well-positioned to help London achieve its goals for a greener, more accessible transportation network.