07 Jun 2018

TechCrunch: Gett raises $80m led by VW

Gett raises $80M led by VW at a $1.4B valuation, says it will be profitable by Q1 of next year

While Uber is growing its business with a net loss on its balance sheet, a smaller rival has confirmed a round of funding, and projects that it will be profitable by Q1 of next year. Gett, the transportation-on-demand startup that competes with the likes of Uber but also traditional taxi cabs, has raised $80 million led by existing investor VW with participation from other previous investors.

Post-funding, Gett is now valued at around $1.4 billion, CEO and founder Dave Waiser told TechCrunch in an interview. This is the first time the company has officially disclosed its value.

It may give Gett a claim to being a “unicorn,” but it is still a pale number when you compare Gett to Uber, which is doing a secondary round right now at a $62 billion valuation. but Gett is playing with another strong card in its hand: Waiser said the funding will be enough to get Gett — which operates in 120 cities globally — to profitability in all of its markets by Q1 of next year, and possibly earlier.

The news comes on the heels of a report that Gett is looking to raise $350 million — a figure that Waiser dismissed, but did not deny outright when I asked about Gett’s plans beyond profitability and this current investment:

“For now, we’re laser focused on this important [profitability] milestone, and the funds we’ve raised to execute on that strategy,” he said, “but when you consider competitive markets like New York and London, we will start thinking about what our next milestone should be, after we make money.” The company has now raised just under $700 million with other investors including Russia’s Sberbank, Access Industries, Kreos Capital and others.

Read more here: https://techcrunch.com/2018/06/07/gett-go/