Transit Startup Via Bucks Tough Market to Win Higher Valuation
(Bloomberg) -- Via Transportation Inc., a software technology startup that helps commuters find and use public transit routes, overcame tough times in capital markets to raise money at a $3.5 billion valuation.
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London-based venture capital firm 83North led the $110 million fundraise, which included participation from new and existing investors, Via will announce Monday. The company snagged a $3.3 billion valuation when it last tapped investors, in November 2021.
While venture capital funding has dried up for startups that prioritize growth over profitability, Via’s customers are cities that offer long-term contracts and more-predictable revenue. The company’s also in a position to tap the billions of investment into public infrastructure promised by US President Joe Biden’s infrastructure plan.
“The environment is very tough, there’s no question,” co-founder and Chief Executive Officer Daniel Ramot said in an interview. “However, the customers that we sell to are recognizing they have a real need to adopt new technologies to make systems more efficient, plus they now have an unprecedented amount of funding to pursue these ambitions. We’re at the right place at the right time.”
The company’s annual revenue run rate exceeded $200 million last year, more than doubling since its 2021 funding round. Via plans to use the capital to expand into new markets as well as look for opportunities to acquire other players this year, Ramot said.
“Cities and departments of education are turning to technology more than they used to and the infrastructure bill has essentially guaranteed funding for these agencies for the next five to eight years,” Ramot said.
Founded in 2012, New York-based Via builds apps for transit agencies that allow riders to pre-book pickups, check schedules or request paratransit services. Its “TransitTech” software uses real-time radar and traffic data to allow transit authorities to adjust routes and dispatch vehicles more efficiently by pooling people traveling in the same direction into one vehicle.
Via previously ran a ride-hailing service that was decimated in the early days of the pandemic. The company announced in December 2021 that it would shutter those existing markets in New York and Washington, in part due to persistent driver shortages and competition from giants like Uber Technologies Inc. and Lyft Inc.
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