Danish micromobility operator Donkey Republic has announced a capital raise of DKK 14.9 million (€2 million) days after publishing its Q3 financial results.
The raise comes from a private placement of new shares to four investors and will provide the capital for fleet and growth investments as Donkey Republic onboards new long-term contracts.
Donkey Republic anticipates the sum will support in delivering on a profitable growth strategy for 2025, improve its balance sheet, and strengthen its future cash flow from operations.
“This funding, secured on the heels of positive Q3 results, will enable further investment in fleet expansion and securing new long-term city contracts, positioning the company for continued success,” Donkey Republic Chief Financial Officer Christian Dufft told Zag Daily.
“Importantly, this capital raise also strengthens Donkey Republic’s financial position and improves its prospects for accessing debt financing in the future, providing additional flexibility to fund growth.”
Earlier this year, Donkey Republic published its 2024 H1 financial report which stated that it would actively seek funding for fleet and organic growth investments. Today, the operator claims it is executing that mission.
Q3 financial results
Donkey Republic’s 2024 Q3 financial results recorded a revenue of DKK 51 million (€6.8 million) in Q3, or a 25% year-on-year increase from 2023.
Its Q3 EBITDA of DKK 17.6 million (€2.3 million) is a 60% increase compared with 2023 and its monthly revenue per bike increased by 15% compared with this time last year. Donkey Republic’s number of riders increased by 32%, trips by 28% and fleet size by 9%.
The operator attributes its performance to a larger fleet, increased fleet utilisation, and more subsidised operations.
“Increased fleet utilisation means our bikes are being used more frequently, driven by factors like improved bike availability, well-working ramped-up subsidised operations, and an overall growing demand for micromobility solutions,” Christian said.
Nevertheless, Donkey Republic is adjusting its full-year guidance to reflect lower than anticipated fleet growth.
Its revenue guidance has been narrowed from the range DKK 135 million to DKK 160 million (€18.1 million to €21.4 million) to the range DKK 135 million to DKK 145 million (€18.1 million to €19.4 million).
EBITDA guidance reduced from DKK 15 million to 30 million (€2 million to €4 million) to DKK 16 million to 21 million (€2.1 million to €2.8 million). EBIT guidance fell from DKK 0 million to DKK 5 million (€0 to €670,000) to DKK -4 million to DKK 1 million (- €536,000 to €134,000).
“While the company has adjusted its full-year guidance to reflect lower than anticipated fleet growth and strategic investments in bike quality, Donkey Republic remains confident in its long-term growth trajectory,” Christian said.
