Israeli-Founded Transport Startup Via Raises $130M at $3.3B Valuation

Israeli-founded ridesharing startup Via announced on Tuesday that it has raised $130 million at a $3.3 billion valuation.

The round was led by Janus Henderson with participation from funds and accounts managed by BlackRock, ION Crossover Partners, Koch Disruptive Technologies, and existing investor Exor. 

Founded in 2012 by Daniel Ramot and Oren Shoval, Via has sought to redefine urban transportation with an advanced digital ride-share platform. Via’s algorithms match – in real-time – multiple passengers traveling in the same direction with a single large SUV or van. The vehicle picks up the passengers at a pre-arranged collection point – a so-called virtual bus stop – set according to traffic conditions and demand.

The company’s last funding round was for $400 million at a $2.2 billion valuation in March 2020. The company also raised $60 million led by 83North at a $2.7 billion valuation. Via has raised over $780 million to date.

In September 2020, Via acquired Fleetonomy, a developer of AI-based optimization solutions for fleets of autonomous vehicles. And in May, the company acquired US firm Remix, a developer of collaborative mapping software for transportation planning, for $100 million.

The demand for software that can transform legacy transportation systems into advanced digital networks has been increasing rapidly worldwide. As a result, Via has been experiencing strong growth, with TransitTech revenue more than doubling year-on-year to exceed an annual run rate of $100 million, cementing Via’s leadership role in the TransitTech category, an announcement from the company said.

“This is the most exciting time in transportation in decades,” Daniel Ramot and Shoval, co-founders of Via, in the announcement,“Cities around the world are recognizing the critical role that technology can play in improving the efficiency and quality of their transit networks. Our software provides an end-to-end solution that helps cities and public agencies plan, operate, and optimize every facet of their transportation system.”

The global TransitTech category is expected to grow to an estimated $1.35 trillion by 2025, according to a recent BCG study, highlighting the critical role that transit plays in economic development, equity, and sustainability. 

In the United States, the recently passed Bipartisan Infrastructure Deal will see an unprecedented $91 billion annually in new and reauthorized funding guaranteed for public transit over the next five years. It follows the nearly $70 billion in federal Covid-19 relief funding already provided to support near-term transit needs. Many of the funds made available through these programs are provided for innovative mobility solutions that improve the efficiency of transportation networks, expand access for underserved communities, and tackle reducing carbon emissions and congestion.

“When we look at the public transit market today, we see tremendous opportunity,” said Denny Fish, portfolio manager at Janus. “We’ve seen time and time again how traditional industries are transformed by the introduction of technology: FinTech, HealthTech, EdTech, and others have driven extraordinary improvements in performance and efficiency. TransitTech is next, and having created this category, Via is uniquely positioned to lead it. The company’s mission to expand access to efficient, affordable, and sustainable transportation is inspiring.”