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Economic Times
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Uber-backed electric bike startup Lime hires banks for US IPO, sources say
- Lime, an electric bike and scooter startup backed by Uber, has hired banks for a potential US IPO next year.
- Goldman Sachs and JPMorgan Chase have been retained for the IPO, which could value Lime higher than its 2020 valuation of $510 million.
- The San Francisco-based startup operates in over 280 cities across nearly 30 countries, offering short-term rentals of electric bikes and scooters.
- Lime, led by former Uber executive Wayne Ting, has been eyeing the public markets for several years.
- The potential IPO comes amid a recovering market for listings, with IPOs in the U.S. raising nearly $27 billion this year, up 45% from last year.
- Lime's IPO attempt could boost confidence in both the IPO market and technology startups that have faced investor skepticism in recent years.
- In the micromobility sector, where Lime operates, many companies have struggled with regulatory challenges and high operating costs.
- Lime reported a 32% growth in net revenue to $686 million for 2024, and announced it was free cash flow positive for the second consecutive year.
- Stablecoin issuer Circle Internet recently raised over $1 billion from its IPO, signaling a positive trend in the listing market.
- Dealogic data shows IPOs in 2022 have not reached the levels seen in 2021, which had a record $177 billion raised during the same period.
- Lime's potential IPO will be a key test for the IPO market and investor confidence in technology startups.
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