Japan-based shared micromobility startup, Luup, has raised JPY 1 billion (~US$8 million) via debt and asset financing.
The deal involved loans from MUFG Bank, Japan Finance Corporation, and The Shoko Chukin Bank with sale-leaseback transactions from Sumitomo Mitsui Finance and Leasing, Mitsubishi HC Capital, and other institutions.
According to chief executive officer of Luup, Daiki Okai, the freshly raised funds will be used to expand its service across the country, targeting both large and small touristic cities as international travel begins to pick back up.
Okai added that the company would double its e-scooters and e-bikes fleet size within the next month.
Key Highlights
- Luup was founded by Daiki Okai, Naomichi Okada, and Ryotaro Makita in 2018, with the aim to reduce carbon dioxide emissions while providing mobility to elderly and disabled individuals.
- The startup leases a fleet of e-scooters and e-bikes on its app to users for short-distance trips.
- Luup currently operates in highly populated cities such as Tokyo, Osaka, Kyoto, and Yokohama.
- During March, there was a proposed revision of a bill submitted to Japan's parliament to raise the e-scooter's maximum speed to 20 kilometers per hour and a driver’s license will not be required for riders who are at least 16 years old.
- Japan’s micromobility market is projected to reach US$11.6 million by 2030 from US$39.4 million in 2020.
