Bicycle Yellow brazilian startup raises $ $63 in contributions

Little more than a month after starting its operations on the streets of São Paulo, the brazilian startup bicycle sharing without station (dockless) Yellow announced receipt of a $ $63 million, on Thursday, 13. It is the largest series A investment round (first round made by investment funds venture capital) ever made in Latin America. The amount will be used to strengthen the operation of the startup in São Paulo, expanding the business to other capitals of Brazil and Latin America, in addition to accelerating the construction of electric scooters company factory. The investment round was led by GGV Capital Chinese Fund, which has invested resources in Didi, who owns the brazilian 99. It is worth remembering that Ariel Lambrecht and Renato Freitas, two of the three founding partners of Yellow, also initiated the operation of 99, next to the entrepreneur Paul van Heerden. Also participated in the round the Monashees funds, Grishin Robotics, through Baseline10 fields Partners and Class 5. Since it was founded in January of this year, the Yellow has raised $ $75 million in investments. In your first month of operation, the Yellow says have already conducted more than 150,000 races in São Paulo – the average cost of a bicycle trip with 15 minutes long, to the user, is R $1. Today, the company has about biker chicks in the city 3000; by the end of the year, you want to be 20000. In addition, with the investment, the company plans to take the bikes to other Brazilian cities and also to Mexico, Argentina, Chile and Colombia. The resources will also be used by the company to build a factory of electric scooters in Latin America – in addition to Brazil, Paraguay and Mexico can also receive the plant. Today, the Yellow uses imported scooters from China to perform tests with this new mode of business in São Paulo, where he still awaits local regulations to operate in fact. In addition to the startup, two other crews do tests with scooters in São Paulo – Shabin and Ride. It's a market with higher costs – in a recent report, the State found that a trip of about 15 minutes with scooter should cost around £ $6 in Brazil. "We will ensure the local supply of scooters, with the ability to control our supply through the factory," said the ceo of Yellow, Eduardo Musa, said in a statement. Ex-ceo of manufacturer Caloi, Muse is the third founding partner of bike-sharing startup. Rafael Ribeiro, Executive Chairman of the Brazilian Association of Startups (ABStartups), the large investment is due especially to the names involved in the operation of the Yellow. "Investors feel attracted by the ability to execute, already proven on 99, Renato and Ariel", says the expert, to the State. According to him, the first round captured by Yellow, at the beginning of the year, served to validate the business model of the company. "Now, they are showing relevant numbers, the amount will be used to scale the operation." In addition, he points out that, at the time of devaluation of the real against the dollar, the Brazil becomes an attractive place for foreign investment. "Local entrepreneurs can do more with lower values, in the view of who's watching from outside."