startups,

Micromobility Rivals Tier and Dott Announce $65M Merger

Lily Polanco Follow Jan 10, 2024 · 1 min read
Micromobility Rivals Tier and Dott Announce $65M Merger
Share this

Tier Mobility and Dott, two leading shared micromobility operators in Europe, have announced a merger backed by $65 million (€60 million) in fresh investment. The combined entity will retain both brand names while consolidating operations in a quest for profitability.

The merger deal comes after months of rumors that Tier, based in Berlin, was seeking a partner for the next stage of growth. Many speculated Tallinn-based rival Bolt would link up with Tier, but instead Dutch operator Dott emerged as the choice.

The new merged company will be headquartered in Berlin and led by Dott’s current CEO Henri Moissinac as its chief executive. Dott founder Maxim Romain will serve as COO, while ex-Tier CEO Lawrence Leuschner becomes chairman of the board. Tier’s outgoing CFO Alex Gayer will retain that title in the combined business.

Moissinac expressed confidence that combining forces will allow the former rivals to “capture the next phase of growth and further accelerate our path to profitability.” Dott said the joint entity already boasts €250 million in revenue.

The merger will bring together Tier and Dott’s fleets of electric kick scooters, e-bikes, and e-mopeds that operate in over 300 cities, mostly across Europe. Investors clearly expect operational synergies between the companies to boost efficiency.

Current backers like Mubadala Capital and Sofina led a €60 million cash infusion to fund the deal. Other notable investors participating include Prosus Ventures, megafund manager M&G, and White Star Capital.

Micromobility companies have struggled to manage strong growth and intense competition sustainably without robust unit economics. This merger appears aimed at leveraging pooled resources and best practices to advance Tier and Dott’s shared goal of achieving profitability.

The transaction is expected to close within two months, subject to customary approvals. If completed as planned, the deal would create a formidable force in European shared micromobility on the path to going public. Tier and Dott’s plan to merge while keeping both consumer brands illustrates a hunger for scale as the industry matures.

Written by Lily Polanco Follow
Junior News Writer @ new.blicio.us.