A total of about 4.5 billion yen ($33.55 million) have been raised by the Japanese micro-mobility company Luup, Inc., bringing its total capital raised to date to about 9.1 billion yen ($67.85 million).
In a statement, Luup stated that of the funds raised, roughly 700 million yen ($5.22 million) was raised through debt and asset financing, and roughly 3.8 billion yen ($28.33 million) was raised through the issuance of equity.
In order to prepare for the implementation of the updated Road Traffic Act on July 1, 2023, Luup said it will use the funds raised to strengthen safety precautions and raise awareness of new traffic laws while also expanding its business by adding stations and improving its vehicles and apps.
Spiral Capital is the lead investor in the equity issuance, just like in the previous round, and additional investments were made by seasoned investors like ANRI, SMBC Venture Capital, and Mori Trust.
In addition to brand-new investors, there are also Mitsubishi UFJ Trust and Banking Corporation, 31ventures, a corporate venture capital of Mitsui Fudosan, and one of the biggest pension funds in Japan.
The company has also started dealings in debt and asset financing with a number of new financial institutions.
In the two years since the introduction of e-scooters, Luup has more than 3,000 stations, according to Chief Executive Officer Daiki Okai, and the company intends to expand its service area into numerous urban cities.
He claimed that more people are anticipated to use micro-mobility following the implementation of the revised Road Traffic Law, which is set for July 1 of this year.
He claimed that numerous property owners, municipalities, and businesses are currently contacting the firm with inquiries.
He thinks that in order for the company to grow, it is critical to uphold its duty as an industry pioneer, work to increase safety and inform people about the proper way to behave.
Despite the fact that Luup now has more than 60 employees, according to him, only a small group of experts work together to develop and run the company in each function, such as corporate development, product development, station expansion, operation construction, and software and hardware development.
