Japanese micromobility operator Luup has raised three billion yen (€18.2 million) to expand its operations to meet growing demand.
Half of the sum raised (1.5 billion yen) is in the form of a “green loan” arranged by Sumitomo Mitsui Banking Corporation and the operator claims this makes it the first Japanese micromobility player to secure financing in this way.
Luup’s raise brings its total funds to approximately 16.6 billion yen (€100.7 million) after the operator raised 3.6 billion yen to triple its fleet last year.
“The social significance of the Luup business has been recognised and we expect our position in Japan to be further strengthened,” Luup Chief Financial Officer Satoshi Mukoyama told Zag Daily. “This low-cost debt financing boosts Luup’s profitability.”
Luup will use the funds to purchase more micromobility vehicles, and last year the operator shared its goal of having 30,000 vehicles by 2025.
It will continue expanding stations and service areas in line with its mission to create infrastructure that turns cities into “station fronts”. Last year, the operator had 5,000 stations across Japan which has doubled to more than 10,000 today.
Going forward, the operator will collaborate with police and local governments to promote traffic rules and safety measures.
Aside from the green loan arranged by Sumitomo Mitsui Banking Corporation, one billion yen came from Mizuho Bank and 500 million yen came from Aozora Bank.
