Battery Ventures, a global, technology-focused investment firm, today announced it has agreed to lead a combined growth-equity investment in two complementary cloud-software companies serving the growing European fleet-management sector.
Vicar, based in Berlin, and Avios, based in Zurich, provide complementary software solutions for forward-thinking, European businesses managing fleets of vehicles as well as certain professionals to monitor their fleet operations, track vehicles, manage costs, reduce emissions and comply with local regulations. Together, Vimcar and Avios count over 250 employees and tens of thousands of customers across Europe in industries including construction, technical field services, healthcare, manufacturing, and government.
Battery’s goal is to eventually bring the two SaaS (software-as-a-service) companies together to create a large, pan-European player and offer better product capabilities and service to customers through product innovation and, potentially, acquisitions. Specific plans for the proposed combination will be revealed at a later time.
The investment comes as businesses face new regulatory burdens around mobile workers and introduce electric vehicles and carpooling into their fleets, changes are driven by higher fuel costs and environmental considerations, among other factors. Many smaller businesses in Europe are still relying on manual processes to manage their fleets of cars and trucks in this environment, making it increasingly difficult to operate cost-effectively.
“We are thrilled to partner with Vimcar and Avios and are excited to work with the leaders of both companies to provide a more integrated fleet-management offering to customers,” said Morad Elhafed, a Battery general partner. “More broadly, the combined investment also highlights Battery’s continuing enthusiasm for software firms serving large as well as small- and medium-sized businesses in specific, vertical industries, including in Germany, where these Mittelstand companies essentially form the backbone of the national economy.”
Added Battery Principal Zak Ewen: “We see significant growth potential for the European fleet-management market, where businesses are increasingly choosing to digitize fleet operations to cope with rising labor and fuel costs, adapt to the electrification of fleets, and manage compliance in an ever-changing regulatory environment.”
“We’re excited to join forces with Battery, a seasoned software investor in Europe and North America, and tap the firm’s growth expertise, including help with go-to-market operations,” said Andreas Schneider, Vicar co-founder, and co-CEO. “We could not imagine a more suitable, global partner to take Vimcar into its next stage of growth.”
Added Christian Siewek, Vimcar Co-CEO: “Partnering with Battery and Avios will allow us to serve more than 250,000 vehicles in the DACH region with a unique mix of telematics and software, creating a powerful, pan-European service.”
“The Battery team, including its European base in London, is incredibly knowledgeable about SaaS and has years of expertise helping businesses scale, so we look forward to working together,” said Francine Gervazio, CEO of Avios. “We’re also incredibly excited to join forces with Vimcar and, together, strengthen our position in the market.”News Source: Businesswire