Battery Ventures invests 200 million euros in European software duo

BATTERY Ventures is buying Berlin-based Vimcar and Zurich-based Avrios, both of which provide software that help European businesses manage fleets of vehicles they own.

The technology-focused investment firm, which has backed companies like Coinbase Global and Dollar Shave Club, plans to eventually merge the firms and use the combined platform to consolidate Europe’s fleet-management software space, Morad Elhafed, a Battery general partner, said in an interview.

“We have a roll-up that we are implementing that is probably putting together about 10 to 15 companies,” Elhafed said. “It is a highly fragmented market.”

Battery’s investment totals 200 million euros (S$283.1 million), according to a person familiar with the matter.

The deals are a rare bright spot in a market that has seen investor appetite for fast-growing, early-stage technology companies shrink. The value of new venture capital deals globally fell 42 per cent to US$286 billion in the first 11 months of 2022, according to research firm Preqin.

Elhafed said that a difficult exit environment for many venture capital firms was generating investment opportunities for Battery to capitalise on.

“Venture capitalists are looking for liquidity and returns and they are trying to be efficient with whatever capital they have right now, as they realise it is harder to fund raise in this environment,” he said, noting Europe was an attractive place to invest at the moment due to the fall in the value of the euro against the US dollar.

Upon completion of the deal – expected later this year – Battery will own nearly 90 per cent of the combined entity.

The two companies provide software which helps users manage the fleets of vehicles they own. This includes functions like vehicle tracking and regulatory compliance.

Between them, the businesses have more than 60,000 customers including Deutsche Bahn and DB Schenker, a statement released by Battery said. Both firms reached break even last year and the focus under Battery’s ownership will be on increasing profitability and growth.

Battery Ventures was founded in 1983 and has offices in the US, Israel and the UK. Last year, it raised US$3.8 billion for two new funds, according to a July press release. BLOOMBERG