Whoosh purchased 45 thousand electric scooters for funds raised during IPO

On December 20, 2022, the kicksharing service Whoosh announced the purchase of 45 thousand electric scooters purchased with funds that were obtained from the initial public offering of their shares on. Moscow Stock Exchange Thanks to this order, the company's fleet will grow by 55% and amounted to 127 thousand vehicles.

It is planned that the scooters will be delivered to Russia from China in February 2023 and will be assembled and prepared for the season at the company's service centers. The company's expenses for this purchase were not disclosed.

Whoosh purchased 45 thousand electric scooters

Whoosh noted that the supplier of scooters will be the Chinese company Ninebot, which is a leader in the production of personal mobility equipment (SIM). SIM will be made specifically for the order of the Whoosh group and are equipped taking into account the operational features of kicksharing.

In 2022, Whoosh appeared in 17 new cities and continues to expand geography, including in cities with a mild climate, where kicksharing works even in winter. In the new season, we plan to enter more than 10 new cities in Russia and the CIS, - said the head of the company Dmitry Chuyko, whose words are given in a press release.

Whoosh plans to expand its fleet of scooters for at least the next few years, says Ivan Avseiko, an international market analyst at Otkritie Investment. According to Otkritie estimates, the phase of active business expansion may last from three to five years. This can be translated into high double-digit average annual revenue growth rates (about 30% in the next five years), the analyst suggests. If the company manages to maintain its high current operating profitability (about 42% at the end of 2022), then after the implementation of the investment program, Whoosh will be able to reach a more stable level of free cash flow generation, Avseiko argues, which, subject to the optimal capital structure, will allow the company to become a good dividend history. Whoosh's business is not related to the commodity sector and is little exposed to geopolitical risks, the analyst notes.^[1]

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