E-scooter startup Voi Technology set to turn a profit after strong 2023

Swedish e-scooter startup Voi Technology has slashed its losses by 34% last year and is poised to turn a profit soon, despite a challenging year for the industry.

In 2023, Voi experienced continued demand for its services as both cities and users increasingly embraced micromobility, while several competitors in the industry ceased operations.

Voi has continued to garner strong support from its two primary customers: users and cities. According to third-party data, Voi holds the highest ride market share within its operational footprint and boasts the largest market share of scooters under licensed city tenders across Europe.

"The transformation to EBITDA profitability, which began in 2021, is now complete, making Voi operationally cash flow positive. Over the past twelve months ending in May 2024, we have now reported over SEK 30 million of adjusted EBITDA, with our strong liquidity continuing to improve. We are proud of our achievements in 2023 and have laid the foundation to reach full-year EBIT profitability, possibly even in 2024," commented Mathias Hermansson, CFO and Deputy CEO of Voi Technology.

In 2023, Voi's underlying demand remained robust, driving an 18% increase in net revenue to SEK 1,416 million, up from SEK 1,203 million. This growth was primarily driven by strong performances in Germany and Sweden, with the UK also contributing significantly to revenue. This turnover increase was achieved organically without expanding fleet size.

Voi's unwavering focus on enhancing operational efficiency led to a gross margin of 50% for 2023, up six percentage points from the previous year. This trend of improvement continued into the first half of 2024.

The company's consolidated Group EBITDA improved significantly to SEK -105 million from SEK -445 million, marking an EBITDA margin improvement of 30 percentage points. Consolidated Group EBIT also saw a notable improvement, rising to SEK -429 million from SEK -834 million. These figures included substantial restructuring and non-cash costs.

In February 2024, Voi implemented organisational changes that optimised its cost structure, reducing the central cost base by nearly 50% compared to mid-2022, despite continued growth in user numbers, setting the stage for improved profitability.

In March 2024, Voi raised $25 million in equity and secured additional debt financing for new vehicles. This capital injection is due to be used to expand the company's e-scooter and e-bike fleet, capitalising on market opportunities driven by increasing consumer demand and rapid industry consolidation.

Additionally, approximately $85 million in convertible loans issued in 2021 were converted into equity, further strengthening Voi's balance sheet to a net cash position.

Hermansson said: “We have an amazing team that has brilliantly executed a difficult transformation over the past year, financially and operationally, and that has now put us in a position to take the next step in our journey. We continue, step by step, to deliver the most efficient, safe and sustainable micromobility service on the European streets for our users and cities.

“Our relentless focus to build a long-lasting robust company that delivers value for our stakeholders continues and Voi has never been stronger than we are today. We are still only at the beginning of the transformation to sustainable urban mobility that so many cities are now adopting.”