ELMO Rent will raise capital from the international market and begin to expand
ELMO Rent, the largest electric vehicle rental service provider in Estonia, is significantly expanding its field of activity by developing remote controlled car technology and vehicle sharing and short-term rental services, raising capital from both international and local markets in several stages.
The company will use the raised capital mainly to bring remote controlled car technology to the streets and expand into foreign markets, but also to expand the car fleet and enter the taxi services market. ELMO Rent plans to bring about 20 remote controlled cars to the streets in the near future to test the rental service of a new generation, and will introduce the new technology to those interested in France and Germany by the end of this month.
‘ELMO Rent has grown into a mobility company of a new generation, developing remote controlled technology for car sharing, short-term rental, and taxi companies,’ said Enn Laansoo Jr., founder and chairman of the supervisory board of ELMO Rent.
In order to develop remote controlled technology and rental services of a new generation, ELMO Rent will expand its investment opportunities to international investors and plans to raise capital from private investors in at least two stages within 2022 in the framework of a non-public directed issuance.
ELMO Rent has entered into agreements with investment banking companies KPMG Baltics and Keystone Advisers to conduct capital raising and acquisition transactions. ‘Collaborating and relying on the experience and knowledge of two different investor consultants to find financing solutions allows us to involve investors of different profiles and scales to find additional funds for the introduction of the short-term rental of remote controlled cars provided for in the action plan of the company, to launch a taxi service, and, in connection with this, to increase the car fleet,’ said Laansoo.
‘The new generation has significantly changed the perception of mobility and people no longer consider it important to have a personal car. ELMO Rent, which has become the leader of green car rental services, combines traditional car rental with new technologies and this creates many new opportunities in both domestic and foreign markets,’ added Hanno Lindpere, a partner at KPMG Baltics.
‘Remote controlled car technology is an important milestone in the transition to fully autonomous vehicles as it will take years for Europe and the rest of the world to develop and implement the necessary regulation to the required extent. Therefore, investors are very interested in remote controlled car technology,’ said Tõnis Kons, a partner at Keystone Advisers.
In June, ELMO Rent intends to raise at least 3 million euros from the local market, which will be used to bring technology to the streets and develop services, expand the fleet of electric and hybrid cars, and enter the taxi services market segment. The raising of capital from the international market will be completed by the end of 2022.
Enn Laansoo, Jr.
Chairman of the Advisory Board