The intercity coach service provider Flixmobility announced that it had extended its Series F round of funding. It was initially believed that the investment round closed at $561 million, making it the largest-ever funding round for a tech company.
The funding also increased the valuation of the company that currently stands at $2 billion. However, the announcement of extending the funding round has raised many eyebrows.
Flixmobility stated that the funding would be used to expand its network to enter South America and Asia markets and to introduce a new line of services.
The company has been working on a number of projects, and this funding will accelerate the implementation of those projects.
FlixBus Charter, a new group-focused service and Flixcar, a long-distance ridesharing brand are some of the projects, to begin with. The startup also plans to kickstart a new project Flix2Fly that incorporates planes in its platform and a similar train service model FlixTrain.
In line with Uber’s business model, Flixmobility does not own any vehicles but creates a platform for companies that own vehicles and connect the travelers with them.
The startup has specifically focused on long-distance routes with the shortest route being 50kms. Most travel routes extend beyond 100 km, and the company refers 200 km as the ‘sweet spot.’
“We are very pleased that so many top-class investors support us in getting even more people interested in sustainable and smart mobility,” quoted Jochen Engert, Founder, and CEO of Flixmobility.
Engert denied to reveal the exact size of the round, however, confirmed that it would be at the same valuation as the first wave of the round.
The startup operates in 29 countries with 300 independent bus and train partners onboard their platform. Around 45 million people used FlixBus and FlixTrain last year. With the new funding, these numbers are expected to increase exponentially.
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