Image Credit: Luup
Japanese micromobility operator Luup has raised approximately 3.6 billion yen (£19.5 million) to accelerate its business expansion and meet growing demand.
The sum was raised through debt and asset financing with 2.5 billion yen (£13.5 million) raised from a syndicated loan arranged by Sumitomo Mitsui Banking.
The shared bike and e-scooter company has said it will use the funds to expand the number of stations and vehicles it operates in Japan and to make Tokyo a ‘station front’ city.
CEO and Founder of Luup Daiki Okai told Zag Daily: “We aim to establish first and last-mile transportation and create a future where all people can move freely.
“Historically, cities in Japan have developed alongside major train stations which has resulted in disparity of convenience as well as real estate value depending on the distance from the train station. Making the entire city ‘a station front’ means creating our network at a high density so that even people living far from train stations can freely move to and from Luup stations.”
Luup aims to double the 5,000 stations it currently has in Japan (including 3,000 in Tokyo) to 10,000 by 2025. It also aims to see its 10,000 vehicles across Japan triple to 30,000 by 2025.
The micromobility operator further intends to strengthen safety measures and engage in public education. A mandatory traffic test has already been implemented which is designed to help users learn Japan’s road rules. Since launching in 2018, Luup has conducted more than 80 safety seminars which have been held in cooperation with the police and other organisations.
Having had conversations with Japan’s governing bodies, Luup has seen institutional support. “With our partnership with local governments, some of our stations are provided by the governments and other quasi-public entities,” Daiki said.
The 3.6 billion yen raised brings Luup’s total to 12.7 billion yen (£68.6 million) to date.