Vmoto's Strategic Investment in Zenion Limited to Boost Last Mile Delivery Sector
VMOTO LIMITED (VMT) Share Update July 2024 Wednesday 24th
Vmoto Invests in UK-Based Zenion LimitedVmoto Limited (ASX: VMT) has announced a strategic investment in Zenion Limited, a key player in the UK's last mile delivery sector, to enhance their fleet of zero-emission electric vehicles.
Instant Summary:
- Vmoto invests £497k (~A$970k) in Zenion Limited.
- Zenion services major delivery companies like Uber Eats, Stuart, Deliveroo, Pizza Hut, and Domino's.
- Investment to be funded from Vmoto's existing working capital.
- Vmoto will receive 11% equity in Zenion, valued at £4 million (~A$7.8 million).
- Zenion plans to expand its fleet to 2,000 vehicles in the next 6 months.
Investment Agreement Details
Vmoto Limited, a global electric vehicle company, has entered into an investment agreement with Zenion Limited, a leading provider of zero-emission electric delivery vehicles in the UK. The investment, amounting to £497k (~A$970k), will be funded from Vmoto's existing working capital. In return, Vmoto will receive an 11% equity stake in Zenion, which currently has an investment valuation of £4 million (~A$7.8 million).
Zenion, founded in 2018, is renowned for its comprehensive service packages that include electric delivery vehicles, custom equipment, and servicing for last mile delivery riders. The company has been using Vmoto's award-winning CPX delivery vehicles, which are known for their range, reliability, and durability. With a fleet that has covered over 15 million miles and saved over 800,000 liters of fuel, Zenion is a trusted partner for major delivery companies like Uber Eats, Stuart, Deliveroo, Pizza Hut, and Domino's.
Strategic Benefits
This strategic investment allows Vmoto to strengthen its presence in the UK and expand its B2B business footprint in Europe. The partnership is expected to bring operational synergies and accelerated growth for both companies. Zenion plans to increase its fleet to 2,000 vehicles in the next six months, exclusively using Vmoto's CPX vehicles, while enhancing the customer experience through its new courier app and back-end systems.
Vmoto's Managing Director, Mr. Charles Chen, expressed pride in being a crucial part of Zenion's operations and expansion. He highlighted Zenion's experienced management team and their excellence in supplying and servicing Vmoto's vehicles for individual delivery riders and fleets alike.
Zenion's Managing Director, Mr. Richard Jordan, welcomed Vmoto as their first investor and shareholder, sharing a common vision to accelerate the use of zero-emission electric vehicles. He expressed confidence in scaling up operations and fast-tracking growth with Vmoto's B2B experience adding significant value to Zenion's operations.
This investment is likely to have a positive impact on Vmoto's stock as it strengthens its position in the rapidly growing last mile delivery sector. The strategic relationship with Zenion will enable Vmoto to explore new applications for its technology and products, potentially opening up new business opportunities in Europe.
Investor Reaction:
Investors and analysts have reacted positively to the news, noting the potential for significant growth and operational synergies. The expansion of Zenion's fleet and the strategic benefits for Vmoto are seen as strong indicators of future success.
Conclusion:
Investors should keep an eye on Vmoto's continued expansion and strategic partnerships. The company's investment in Zenion Limited is a promising step towards strengthening its market position and driving growth in the zero-emission electric vehicle sector.