Banks, Estonia, Financial Services, Good for Business, Innovations, Internet, Investments, Technology, Transport

International Internet Magazine. Baltic States news & analytics Sunday, 05.07.2020, 10:43

Estonia's Bolt enters into EUR 50 mln funding partnership with EIB

BC, Tallinn, 16.01.2020.Print version
Estonian transportation platform Bolt has entered into a 50 million euro quasi-equity facility agreement with the European Investment Bank (EIB), which Bolt is planning to use to invest into improving and expanding its ride-hailing technology and personalized mobility services, like food delivery, reported LETA/BNS.

The guarantee of the EIB loan is the European Fund for Strategic Investments (EFSI), which is at the center of the European Investment Plan. The goal of the funding is to support Bolt's product development, focusing on the security, reliability and sustainability of services and preserving the company's current high efficiency, in which technology has a big role to play. This involves ride-sharing as well as new services, like food delivery.

"Bolt is a good example of European excellence in tech and innovation. The bank is very happy to support the company in improving its services, as well as allowing it to branch out into new service fields. In other words, we’re fully on board!" EIB Vice President Alexander Stubb said.

"I am proud that Europe, through the Investment Plan, supports Estonian platform Bolt's research and development strategy to create innovative and safe services that will enhance urban mobility," European Commissioner for Economy Paolo Gentiloni said.

"Mobility is one of the areas where Europe will really benefit from a local champion who shares the values of European consumers and regulators. This is why we are delighted that the European Investment Bank has become a supporter of Bolt. This will help us reach more Europeans quicker," Bolt's co-founder Martin Villig said.

The European Investment Bank is the European Union's nonprofit long-term lending institution. As a "policy-driven bank" whose shareholders are the member states of the EU, the EIB uses its financing operations to bring about European integration and social cohesion. Over the last five years, the EIB has financed Estonian technology, infrastructure and transport sector projects in the extent of over 830 mln euros.

Bolt is a transportation platform that offers ride ordering, food delivery and electric scooter rental services in Estonia. Founded in 2013, the company is currently operating in 35 countries and has 30 mln users.

The European Fund for Strategic Investments (EFSI) is the basis of the European Investment Plan. It offers the European Investment Bank Group first-loss protection, which enables the EIB Group to finance more risky projects. The estimated volume of the projects and agreements to receive funding in the framework of EFSI will be 458.8 bn euros, through which funding will be given to over a million startups and small and medium-sized enterprises (SMEs) in EU member states. So far, the largest EIB funding in the framework of EFSI in Estonia is the 30 mln euro loan granted for the expansion of Tallinn Airport in 2016. 

Search site