Abrdn in £52m deal to support e-scooter business
Asset manager Abrdn has invested in an e-scooter and e-bike startup, Dott in a sign that it sees widespread adoption of new forms of city travel.
The Edinburgh based manager of £500 billion of client money, took part in a $70 million (£52 million) Series B funding round for the Dutch startup, which was founded in 2018.
Other investors in the round included Sofina, EQT Ventures and Prosus Ventures.
Dott allows users to rent electric scooters and e-bicycles for quick trips in cities around Europe and has won tenders in Paris and London.
Alistair Watson, head of strategy innovation and private equity at Abrdn, said Dott’s eco-friendly credentials were a core part of the appeal.
“Environmental, social and governance considerations are at the heart of our process as we seek the most sustainable investment opportunities globally,” Watson said.
“We felt that Dott is well positioned to be a leader in the category, offering a high quality product that has been recognised with significant growth in 2021, alongside a responsible business model which takes a rigorous approach to minimizing its carbon footprint.”
Dott is seen to fit the current enthusiasm among investors for projects that can fit the purpose-driven and ESG – environmental, social and governance – agenda.
However, critics point to the often short shelf-life of many e-scooters which means they must be frequently replaced and in some cases are dumped, even in rivers and canals. Dott claims to have “greater control over the quality of its logistics and vehicle maintenance” than rivals.
Henri Moissinac, co-founder and CEO of Dott, said: “Starting 2022 with additional funding will propel our growth and allow us to offer environmentally friendly travel to more people. We look forward to working with our new investor, abrdn, alongside our existing partners to expand our reach and help achieve fresher air and less traffic for everyone.”