Gett, an Israeli company that provides on-demand transportation services for businesses, is reportedly in advanced negotiations with Fortissimo Capital, a private equity firm based in Israel, for a $200 million investment. The deal, if completed, would value Gett at around $1.5 billion, according to Ctech, a technology news website owned by Calcalist.
Gett, which operates in Israel, the UK, Russia and the US, has been facing financial difficulties due to the Covid-19 pandemic, which has reduced the demand for travel and mobility. The company has been cutting costs and laying off staff in an attempt to reach profitability. In May 2019, Gett raised $200 million from Volkswagen Group, one of its strategic partners, at a valuation of $1.8 billion. Since then, the company has not disclosed any new funding rounds.
Fortissimo Capital sees potential in Gett’s B2B model
Fortissimo Capital is a private equity firm that focuses on investing in Israeli-related companies in the technology and industrial sectors. The firm has raised over $1.6 billion in five funds since its inception in 2004. Some of its portfolio companies include SodaStream, a maker of home carbonation machines; SintecMedia, a provider of broadcast management software; and IncrediBuild, a software development acceleration platform.
Fortissimo Capital is interested in Gett’s business model, which targets corporate clients rather than individual consumers. Gett claims to have over 15,000 corporate customers worldwide, including Google, Siemens and Disney. The company says it can save up to 40% on travel expenses for its clients by offering fixed and transparent prices, consolidated invoicing and reporting, and quality service.
Gett aims to become a global mobility platform
Gett’s vision is to become a global mobility platform that connects businesses with various transportation options, such as taxis, ride-hailing services, car rentals and public transit. The company has partnered with several mobility providers, such as Lyft in the US, Ola in the UK, and Citymobil in Russia, to offer its customers access to a wider network of vehicles.
Gett’s CEO and co-founder Dave Waiser said in January that the company was “operationally profitable” and was hitting its budget targets. He also said that the company was planning to go public in 2023 through a merger with a special purpose acquisition company (SPAC), a type of shell company that raises money from investors to acquire an existing business.
However, the SPAC market has cooled down recently due to increased regulatory scrutiny and market volatility. It is unclear whether Gett will pursue this option or look for other ways to go public. The potential deal with Fortissimo Capital could provide Gett with more capital and flexibility to achieve its growth plans.