Cabify, the Spanish ride-hailing company, has raised €15 million ($16.4 million) in venture debt funding from a unit of Spanish bank BBVA.
The debt financing from BBVA Spark, a division of the bank that provides loans to high-growth companies, is intended to bolster Cabify’s sustainability agenda in providing mobility services.
While headquartered in Madrid and active in its home country, the bulk of Cabify’s business is in Latin America, serving several countries with ride-hailing and logistics.
“We have a firm purpose to make cities better places to live, and we are advancing on this path thanks to the efforts of millions of collaborative drivers, passengers, and hundreds of employees who, day after day, promote more accessible and sustainable mobility options,” Cabify’s chief financial officer Juan Barbolla said.
The company has committed to using only electric vehicles in its fleet with that transition ongoing. It plans to have the transition, across both Spain and Latin America, complete by 2030.
“Cabify is demonstrating that it is possible to promote a sustainable urban mobility model in the main cities of Spain and Latin America in a way that is accessible to the majority of citizens,” Roberto Albaladejo, head of BBVA Spark, said. “Cabify’s zero emissions strategy through the progressive electrification of its fleet is a pioneer in its segment and is fully aligned with BBVA’s vision.”
BBVA Spark is a unit of BBVA, one of Spain’s oldest banks, tasked with funding high potential start-ups. Last year it received a €200 million ($219 million) guarantee from the European Investment Fund (EIF), a European Union fund for backing tech and innovative firms.
EIF’s mandate is to generate funding for companies contributing to lowering emissions and cleaner energy.
Cabify’s electrification of its fleet falls into this remit. It recently announced that it had added 200 new electric cars to its fleet in Madrid, operated by its subsidiary Vecttor. According to the company, one of every four cars operated by Vecttor are zero emissions.
The loan from BBVA Spark comes almost a year after Cabify raised $110 million in a funding round led by Orilla Asset Management as well as an investment from the European Investment Bank in 2022.
According to figures released by the company, it generated $688 million in gross revenue in 2022 with gross profits of $79 million.
Recently a number of drivers that are driving for Cabify through its Vecttor subsidiary announced strike action over issues around pay and benefits. The action is led by Spanish union SLT, one of the unions that represent drivers in Spain. Cabify declined to comment.