Brazil’s Tembici, Itaú bicycle rental operator, raises US$80 million to accelerate electrification

RIO DE JANEIRO, BRAZIL – Tembici, the mobility startup that operates Itaú’s well-known bicycle rental plan, has completed a R$420 million (US$80 million) round of funding. The round, series C, was led by Crescera Capital and included two new investors, Pipo and Endeavor Catalys, joining funds IFC, Valor, Red Point, and Igah.

The funds will be used to expand the number of electric bicycles in operation. This will be the startup’s big bet for the future. “The e-bike is highly anticipated by users because it expands the possibility of daily use since it facilitates longer trips and with different terrains,” says Tomás Martins, CEO, and co-founder of the company.

The round comprises an equity investment, the majority, and debt structures issued by Itaú and Santander, including ESG and green-selected bonds. The startup posted more than 50% revenue growth last year compared to the pre-pandemic period. The business strategy combines revenue from sponsorships, such as that of Itaú, and payment for services.

Since the last fundraising, in 2020, Tembici has invested R$30 million in technology, team expansion, GPS deployment on bikes, and the introduction of electric bikes. “The company has also been positioning itself in technology and has its decisions focused on data. Tembici has everything to position itself as a major global player in the urban mobility sector, and we believe in the potential for expansion to other countries,” said Fernando Silva, partner at Crescera.

MORE BIKES

In June, Tembici announced that it would make 10,000 more bicycles available by 2022. By the end of next year, the company should double in size. The expansion movement goes along with the increase in spending on cycling by Brazilians.

According to an Itaú survey, consumers increased their spending on bicycles by 54.4% last year. The survey considers spending with credit and debit cards processed by Rede, the bank’s electronic payments company.

Globally, the use of bicycles is also increasing. A survey released by Google on Wednesday (29) showed that searches for the term continue to grow, and in countries like France, the increase was more than 300%. In addition, people are increasing the distance they travel by bike. On average, they are 10% longer than in 2020.

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.