Bird Rides Inc., the scooter sharing startup valued at more than $2.5 billion, today announced that it has raised $75 million in additional funding and acquired competitor Circ to expand its global presence.

The $75 million cash injection is an extension to the $275 million Series D round Bird closed in October. The investment was led by Sequoia Capital and Canadian pension fund CDPQ at a pre-money valuation of $2.5 billion, meaning Bird is now likely worth considerably more.  

Circ, officially LMTS Holding S.C.A, is a Berlin-based micromobility startup that has raised about $60 million in venture capital. It operates a fleet of electric scooters similar to Bird’s that covers 43 cities in 12 countries throughout Europe and the Middle East. 

Acquiring Circ should enable Bird to fast-track its international expansion roadmap. The startup, which mainly operates in the U.S., last July announced plans to open a Paris office with a target headcount of 1,000 employees by the middle of 2021. Absorbing Circ’s existing infrastructure and 300-plus employees allows Bird to avoid the delays that would have been involved in expanding its network organically.

The terms of the deal were not disclosed. However, the acquisition announcement stated that four of Circ’s institutional backers are “joining Bird’s existing investors,” which strongly suggests a transfer of equity is taking place. Those backers are Target Global, Team Europe, Idinvest Partners and Signals Venture Capital.

Scooter sharing has grown from a tiny niche to a global phenomenon in just three years thanks to the aggressive expansion efforts of players such as Bird. The startup and top rival Neutron Holdings Inc., better known as Lime, have  expanded to well over a hundred cities worldwide. But this rapid growth is proving increasingly challenging to sustain because of pushback from municipal authorities worried about scooter accidents and the difficulty of turning a profit in such a competitive market. 

The intensifying industry focus on profitability showed through in Bird’s acquisition of Circ as well. “We like their laser focus on treating cities as their No. 1 customer and their mindset of prioritizing profitability over growth,” Bird Chief Executive Officer Travis VanderZanden said in a statement about the acquisition. 

Photo: Bird