Transport-as-a-service specialist Zeelo has completed a US$23 million funding round that will fuel expansion in the UK and Ireland along with merger and acquisition activity “to redefine sustainable mobility for frontline workforces, corporate campuses and students.”
Commercial growth in North America will also be boosted by the fundraising, which has been led by impact investor Blue Earth Capital with participation from existing investors.
Zeelo’s proprietary routing software and AI-powered transport management platform are further parts of its business that will benefit from the Series B round, with both in line for enhancements.
The supplier has over 650 operator partners across its territories, giving access to more than 10,000 vehicles. Clients include some of the world’s largest employers and school groups, with Amazon, Barclays and UPS among the former.
The UK and Ireland operation is profitable, while in North America, Zeelo has delivered over 175% year-on-year revenue growth. Its AI-powered virtual transport management workflow automates route design, incident management and customer support, and is cited by the supplier as being “at the heart” of its service.
That platform enables greater operational efficiency, lower costs and an enhanced customer experience, but the supplier says it retains the human involvement “that defines Zeelo’s high service standards.”
Speaking about the funding round, Co-Founder and CEO Sam Ryan says: “With this new investment, we are scaling our impact – delivering inclusive mobility programmes that not only reduce CO2 emissions and car dependency but also connect people to work and education in areas not served by public transport.
“Our proprietary tech platform and AI-powered operations are driving incredible return on investment for customers, while our team continues to raise the bar for service quality.
“This capital gives us the resources to further integrate with industry partners, including operators and electric and autonomous vehicle providers, and to strengthen our market presence through focused go-to-market and acquisition strategies.”
Over the past year Zeelo has powered over seven million passenger rides via its platform. In the UK, 10% of trips were delivered by electric vehicles. Emissions for other services continue to be offset in full.
The supplier adds that it continues to invest heavily into the coach industry, partnering with operators to digitise, optimise and electrify their offerings. In 2024 it purchased home-to-school specialist Kura as part of growth by Zeelo into that segment.
Speaking about the decision to invest in Zeelo, Blue Earth Capital Head of Private Equity Kayode Akinola adds: “Our private equity team is excited to partner with Zeelo in its mission to decarbonise and democratise access to transportation.
“Zeelo’s ability to shift commuters to shared bus trips and optimise routes delivers significant greenhouse gas reduction potential and supports our focus on efficiency gains, while its role in accelerating adoption of EVs in the shuttle market aligns well with our electrification theme – an important pillar towards decarbonisation.”
Separately, Zeelo has appointed James Winn as Chief Revenue Officer. He is based at the supplier’s office in the United States and brings the business new capabilities in commercial strategy and mobility partnerships, it says.
