Whizz Raises $12M in Series A Funding to Revolutionize Last-Mile Delivery

Photo byPhoto via Whizz

Whizz, the leading e-bike rental platform for last-mile delivery drivers, announced earlier this month that it has raised $12 million in a Series A funding round, according to a press release. The round was led by LETA Capital, with participation from Flashpoint VC and others. This investment brings the company’s total funding to $20 million, fueled by 3.5x year-over-year growth and annual recurring revenue (ARR) of more than $8 million.

Founded in 2022, Whizz has rapidly become an essential service for delivery drivers, particularly immigrant workers who often lack the credit history to afford a $1,500 e-bike or qualify for a loan.

“Most delivery services don’t provide vehicles, and drivers – often immigrant workers without a credit history – simply cannot afford a $1,500 e-bike and don’t qualify for a loan,” explained Mike Peregudov, CEO at Whizz and an immigrant himself, in the press release.

Battery-related fires have soared by 800% since 2019, prompting New York state regulations that rendered 90% of e-bikes illegal. Whizz provides safe, affordable e-vehicles that comply with these regulations, offering a critical solution for delivery workers.

Whizz’s high-quality e-bikes not only comply with state regulations but also help drivers earn more. These vehicles safeguard drivers against disruptions, ensuring a more reliable and lucrative working environment.

The newly raised funds will enable Whizz to expand its fleet and address key issues such as battery fires and worker disparities in the delivery space.

“This funding means a fairer, safer, and more lucrative future for delivery drivers,” said Peregudov.

Currently operating in New York and New Jersey, Whizz plans to extend its operations across the United States starting in 2025. The company aims to grow its fleet from 2,500 e-bikes, featuring 8-hour battery life, GPS trackers, built-in anti-theft systems, and on-demand maintenance and repairs, to more than 200,000 vehicles by 2030.

Whizz has attracted significant attention, becoming an official e-bike partner of DoorDash and Grubhub, which together hold a 75% market share in the food delivery industry.

“Since its launch in 2022, Whizz has sped ahead of its competitors by building the safest and most reliable delivery e-bike on the market,” said Peregudov. “We fully intend to stake our claim as the number one e-bike rental service in the US.”

Sergey Toporov, Partner at LETA Capital, commented on the investment: “The hype around micromobility and fast delivery has passed, and most VCs have pivoted to other industries. However, we focus on companies with fundamental business value in markets not inflated by an excess of capital. Whizz is a promising company with a strong team of founders who work extremely efficiently and are successfully managing the startup's scaling.”

Denis Mosolov, managing partner of Flashpoint Growth Debt, added, “We believe that Whizz has built a highly scalable platform allowing it to provide an affordable, yet safe and sustainable transportation solution for delivery workers. We are thrilled to support Whizz in this round and look forward to this capable team taking Whizz to the next level.”

Whizz is an e-bike subscription service for delivery drivers in the U.S., founded in 2022 by Alex Mironov, Ksenia Proka, Artem Serbovka, and Mike Peregudov. The company partners with DoorDash, Grubhub, and other delivery enterprises, offering $159/month rental subscriptions to independent delivery workers. Whizz manages a fleet of 2,500 e-bikes, primarily in New York and New Jersey, with a growth rate of 250% year over year.