Brazilian motorcycle rental startup, Mottu, has secured $50 million in funding in a round led by QED Investors and Bicycle Capital, managed by Marcelo Claure and Shu Nyatta. This investment, equivalent to approximately R$250 million, also saw participation from Endeavor Catalyst and Caravela. The newly acquired capital will be directed towards team expansion, geographic growth, and the expansion of Mottu Entregas, its last-mile delivery service connecting motorcycle couriers with retailers and restaurants.
Currently, Mottu boasts 50,000 rented motorcycles, marking a significant increase from its previous round in June of the previous year, when it had 10,000 motorcycles. Founder Rubens Zanelatto is aiming to achieve an Annual Recurring Revenue (ARR) of over $100 million by December, compared to $10 million in December 2021. In just over a year, Mottu has also effectively doubled its motorcycle fleet, reaching 100,000 motorcycles.
A year ago, Mottu established a motorcycle factory in the Manaus Free Trade Zone to gain control over its supply chain, rather than relying on Honda, its former supplier. This factory is now producing approximately 3,000 motorcycles monthly, equating to 36,000 annually, positioning it as Brazil’s third-largest motorcycle factory.
Mottu’s geographic expansion primarily focuses on two markets: Brazil and Mexico, where it entered midway through the previous year. In Brazil, the company plans to operate in 35 cities by year-end, with aspirations to add 10 more cities next year. In Mexico, where it currently operates exclusively in the capital, Mottu aims to expand into Monterrey and Guadalajara this year.
Additionally, Mottu intends to create a mobility vertical in the near future, offering motorcycle rentals not only to couriers but also to individuals seeking an alternative to public transportation. With daily rental rates around R$18, Mottu provides an affordable option for those relying on buses or the metro for transportation.
Notably, the funds raised in this round will not be used to expand the fleet; Mottu has chosen to finance motorcycle production through debt issuance. Last year, it secured a debt round with Verde Asset, which allows capital to be drawn as needed, contingent on satisfactory results. This approach positions Mottu for sustainable growth and flexibility in the competitive motorcycle rental market.