Lime Electric Bike-Sharing Start-Up Aims for $500 Million Valuation in Stock Market Float

Strategic Insights -

The San Francisco-based electric bike-sharing company Lime is preparing for a stock market float, targeting a valuation of over $500 million. Founded in 2017, Lime operates e-bikes and scooters in 280 cities and has retained bankers from Goldman Sachs and JP Morgan to prepare an initial public offering next year. The company has faced challenges, including a pandemic-related crunch, but has since recovered, reporting 32% growth in net revenue to $686 million in 2024.

Key Takeaways:

  • Lime is targeting a stock market float with a valuation of over $500 million, aiming to raise capital through an initial public offering (IPO) next year.
  • The company retained bankers from Goldman Sachs and JP Morgan to prepare for the IPO, which will be a test of confidence in the IPO market and the micromobility sector.
  • Lime reported 32% growth in net revenue to $686 million in 2024 and was free cashflow positive for the second consecutive year.
  • The UK division posted revenue of £63.5 million for the year ending December 31, 2023, and had a profit before tax of £2.1 million.
  • Lime has attracted criticism from London councils over concerns that its bikes are left discarded by riders, and the company's CEO, Wayne Ting, acknowledged the need for more infrastructure and partnerships with cities and citizens.

Statistics:

  • Lime operates e-bikes and scooters in 280 cities.
  • The company reported 32% growth in net revenue to $686 million in 2024.
  • Lime's revenue in the UK was £63.5 million for the year ending December 31, 2023.
  • The company had a profit before tax of £2.1 million in the UK for the same period.
  • Lime faced a harsh pandemic-related crunch but has since recovered.

Sources:

  • Thompson, S. (2024, February). Lime Reports 32% Revenue Growth in 2024. Bloomberg.
  • Lime's UK Accounts for the year ending December 31, 2023. Lime UK Ltd.
  • Thompson, S. (2020, 2024). Uber Invests in Lime Amid Pandemic. Bloomberg.
  • Lime's IPO attempt comes as the listing market in America shows early signs of a recovery after an arid spell that lasted for more than two years.