Global electric vehicle company, Vmoto (ASX: VMT), has made a strategic investment in UK-based Zenion, a move set to enhance Vmoto’s position in the rapidly expanding last mile delivery sector and strengthen its supply chain capabilities. The investment, valued at £497k (approximately A$970k), will be funded from Vmoto’s existing working capital and marks a pivotal step in the Company’s growth strategy that shores up its balance sheet.
Zenion, established in 2018, is a provider of zero-emission electric delivery vehicles in the UK, catering to major last mile delivery companies such as Uber Eats, Stuart, Deliveroo, Pizza Hut, and Domino’s. With a fleet of around 620 vehicles, Zenion has already clocked over 15 million miles and saved more than 800,000 litres of fuel. Collaborating with their new investor, Zenion plans to expand its fleet to 2,000 vehicles within the next six months, exclusively using Vmoto’s CPX electric delivery vehicles.
The investment agreement involves Vmoto supplying electric vehicles and credit notes to Zenion in exchange for an 11% equity stake in the company, which currently holds an investment valuation of £4 million (approx AUD $7.8 million). This partnership is expected to bring significant operational synergies and accelerated growth for both companies.
Vmoto’s CPX delivery vehicles have proven to be reliable and durable, making them a preferred choice for Zenion’s operations. These vehicles are equipped with zero-emission technology, aligning with the growing demand for sustainable transportation solutions in the last mile delivery sector.
Charles Chen, Managing Director of Vmoto, expressed his excitement about the partnership, stating, “We are proud to be an integral part of Zenion’s operations and expansion.”
“Zenion has an established and experienced management team, which excels in supplying and servicing our vehicles for individual delivery riders and fleets alike, through some of the largest food delivery platforms in the world.”
This strategic investment allows Vmoto to expand its B2B business footprint in Europe, where they already have a strong presence thanks to its denser populations in major cities where scooters and mopeds have been popular for decades.
The last mile delivery sector has seen significant growth in recent years, driven by the rise of eCommerce and the increasing demand for fast, efficient delivery services where delivery speed (within 30 minutes in some locations) is a competitive advantage for many businesses. By investing in Zenion, Vmoto is positioning itself at the forefront of this sector, providing innovative, sustainable solutions to meet the needs of delivery riders and platforms across the UK and potentially beyond.
Richard Jordan, Managing Director of Zenion, welcomed Vmoto’s investment, “confident that we can scale up our operations and fast track our growth very quickly in the coming years. Vmoto’s B2B experience will also add significant value to Zenion’s operations and businesses.”
In their last trading update to the market in March 2024, Vmoto flagged lower-than-expected sales orders, citing “continuing volatile macro-economic environment in Europe and China”. Factoring these reduced sales in, Vmoto expected to report a net loss after tax in the range of $3.3 million and $3.6 million but is well capitalised with a cash position of $39.2 million as of 31 March 2024.
Emily Maxwell is a business writer at The Sentiment with interest in the tech, fintech and retail industries.
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1 Comment
Shraddha13
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