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Ride-hailing app Gett flags down £50m in run-up to float

Gett is raising the money through a loan that will convert into shares when the company floats, Sky News learns.


Gett, the ride-hailing app part-owned by Volkswagen, is in advanced talks to raise tens of millions of pounds as it steps closer to joining Uber Technologies and Lyft as publicly traded companies.


Sky News has learnt that Gett is close to finalising a $60m (£47m) funding round - its first external funding since it secured $200m from investors just over a year ago.

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Sources said on Monday that the new funding would be structured as a loan note that would convert into shares in Gett when the company completes a stock market listing.

Gett has made no secret of its plans to become a public company, initially setting a 2019 target for an initial public offering before pushing that back to the first quarter of this year.

People close to the business now believe a 2021 flotation is more likely as the global economy tries to recover from the coronavirus pandemic.


Gett, which launched in the UK in 2011, counts PricewaterhouseCoopers, RBS and Uniqlo among its corporate customers.


The company is now aiming to become the clear leader in the business-to-business market as it seeks to differentiate itself from rivals in the consumer ride-hailing market.

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Uber, which floated in New York last year, has struggled to convince investors of its ability to become profitable in its core ride-hailing operations, and has seen its shares gyrate wildly since its IPO.


Gett has yet to decide whether to list in London or New York, although some people close to it believe a US exchange is likelier.


The company is run by Dave Waiser, its chief executive, who argues that it is markedly different to Uber and Lyft because of its path to profitability.


Ride-hailing services have found themselves financially squeezed by the pandemic because of national lockdowns forcing usually prolific customers to remain at home.

Gett has 17,000 corporate users, including, it says, one-third of the Fortune 500 across 100 countries.


The $60m convertible loan is understood to have drawn interest from a number of new investors, although their identities were unclear on Monday.


In addition to VW, Gett's existing shareholders include the billionaire tycoon Len Blavatnik, who has just taken the record label Warner Music Group public in New York.


When it raised money last year, reports said that Gett had done so at a valuation of about $1.5bn.


A Gett spokeswoman declined to comment.


Source: https://news.sky.com/story/ride-hailing-app-gett-flags-down-50m-in-run-up-to-float-12002898

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