The SoftBank-backed car sharing app developer has filed to go public and is following the lead of peers by diversifying its mobility offering.

SoCar, the South Korea-based car sharing platform provider backed by internet and telecommunications group SoftBank, has filed to float on the Korea Exchange, as more transport technology providers diverify into other forms of mobility. Founded in 2011, SoCar provides an on-demand service that allows users to find and use vehicles, paying only for the time during which they are used. The company raised about $50m in late 2020 at a valuation of approximately $834m to take its total funding to roughly $275m, a spokesperson told TechCrunch. Its valuation is expected to rise to approximately $2.5bn in the initial public offering. SoCar has expanded into areas such as electric bicycle rental, in-car care and autonomous driving, having acquired e-bike rental service Elecle last month. It is not the only mobility technology company to seek a public listing recently. Internet group Kakao’s on-demand ride subsidiary, Kakao Mobility, began looking for lead managers in August 2021 for an IPO set for this year but has since had to postpone those plans due to intensified government scrutiny. However, it has been establishing itself in the e-bike space with its Kakao T Bike offering. Bolt, the Estonia-headquartered ride-hailing app valued above $4.75bn, has its own e-scooter offering while more established competitors such as Uber, Didi, Grab and Gojek have expanded into areas such as food and package delivery in addition to financial services. Projections for the global car sharing market have it growing at a compound annual growth rate (CAGR) of 16% according to market research firm Research and Markets. The growth rate for the global e-scooter market, however, is nearly double that between 2018 and 2021, with a CAGR of 30.3%, making it conducive to investment from other players in the transport industry. SoftBank invested in SoCar through its SoftBank Ventures Asia unit, in a 2019 round sized at $44.5m, alongside KB Investment, Altos Ventures and Stonebridge Ventures. SoCar’s Malaysian spin-off, SoCar Malaysia, received $18m in a February 2020 series A round backed by oil and gas provider KH Energy and conglomerate Eugene’s investment subsidiary, Eugene Private Equity. It added $55m in a September 2021 series B round that included conglomerate Sime Darby and EastBridge Partners.

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Fernando Moncada Rivera

Fernando Moncada Rivera is a reporter at Global Corporate Venturing and also host of the CVC Unplugged podcast.