Despite the slowdown caused by the novel Coronavirus pandemic, Gett managed to secure $100 million funding and plans to use it to expand its business travel services that have seen a good surge even during these times.
On Tuesday, July 21, on-demand ride-hailing app Gett announced that it has raised $100 million funding from investors. This comes at a time when the companies in this sector are facing the major heat in the business due to the slowdown caused by the novel Coronavirus pandemic.
Moreover, with government lockdown, people are still reluctant to travel outside. Gett, the Israel-based company said that it will use this funding for improving its “ground travel platform for corporates”. Gett is majorly focusing on business travel these days in Europe and North America. The company is currently keen to work with large firms having thousands of employees. Since the launch of its business travel service in 2010, Gett has added a third of Fortune 500 companies as its customers. Other companies like Uber Technologies Inc (NYSE: UBER) and India’s Ola have also announced their services in the business travel sector.
Speaking to TechCrunch, Gett CEO and founder Dave Waiser said that they are seeing good growth in their B2B business even during the Coronavirus pandemic. Speaking about the latest fundraising, Waiser also said:
“The way people move around in cities is changing dramatically as a result of COVID-19 and businesses are seeking to optimise costs and to put in place efficient and safe ground travel solutions for their employees. Our mobility software is helping businesses thrive by empowering people to be their best on the go. Being fully funded and reaching a key milestone in our profitability journey is an important step for the company. The proceeds will help us grow our unique corporate SaaS platform internationally, while we consider an IPO in the future, to further accelerate our expansion.”
Gett Plans to Turn Cashflow Positive in 2021
Last year in December 2019, the company announced of turning operationally profitable. As per its earlier expectations, Gett was also planning to go public this year. However, it seems these plans have been pushed to next year, 2021.
Gett added that it is on track with its financial targets, set pre-COVID-19. In June, the company also reached profitability in each of its core markets. Gett also plans to turn net cash flow positive before its “potential” IPO in 2021. Waiser said:
“It’s a luxury, enabling flexibility for the company to go public when it’s best, rather than from the cash needs reasoning as many (money-losing) companies have to do nowadays”.
With the latest $100 million fundraise, Gett has secured a total of $750 million in funding. Amos Genish, Gett chairman, underlined:
“The completion of the fundraising during the pandemic is a clear expression of confidence by our shareholders and new investors in Gett’s vision to focus on the corporate market and its plan to expand globally, as well as in the Company’s strong operational and financial performance”.
Gett hasn’t yet disclosed the names of the investors in the latest funding round.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.