Volvo Invests In Public Transport Unicorn Optibus

Volvo Group Venture Capital yesterday announced an investment in Optibus, an Israeli unicorn that develops software for public transportation.

The Swedish company, with almost $39m billion net sales in 2021, says it aims to accelerate the digitalization and electrification of buses. The size of the investment was not disclosed.

In May, Optibus announced the completion of a $100 million Series D funding round to advance its public transportation software platform and strengthen its global market presence.

The company, headquartered in Tel Aviv, develops and provides optimization software for public transportation planning and management. Its solutions are used in over 1,000 cities in 26 countries across North and South America, Europe, the Middle East, Africa, and Asia.   

“We are honored to receive this strategic investment from Volvo Group Venture Capital to enable greener, more efficient public transportation operations through better software infrastructure,” said Amos Haggiag, CEO and co-founder of Optibus.

“Between Volvo Group, as a global OEM with decades of transport industry expertise, and Optibus, as an agile, quickly scaling SaaS company, this relationship spurs the synergy needed to advance digitalization and sustainable fleets.”

Volvo Group Venture Capital – as part of the Volvo Group – invested in Optibus as a part of its ongoing commitment to electrification and logistics technology. The investment highlights the companies’ shared commitment to more efficient public transportation systems and sustainable bus fleets. The Volvo Group aims to accelerate the digitalization and electrification of the global public transport sector through this investment. 

Both companies believe that high-quality, sustainable public transportation is possible through industry-wide digitalization and vehicle electrification. They underscore that advanced software solutions are key for cities and bus operators to take advantage of the market development. The companies will work together to create mutual strategic learnings and industry growth opportunities. 

“The collaboration with Optibus will contribute to our efforts to support customers with more efficient and sustainable transport solutions,” said Anna Westerberg, President of Volvo Buses.  

Christina Brinck, Investment Director of Volvo Group Venture Capital, said: “Optibus offers a scalable SaaS solution and has doubled its revenue year over year. We are impressed by the founders, the team culture, and the company’s achievements. We believe the Volvo Group can add considerable strategic value to the continued development of the business.”