Electric scooter company Bird is looking to go public with special purpose acquisition company (SPAC) Switchback II Corporation, dot.LA reported. The proposed deal values Bird at $2.3 billion.
Switchback II Corporation, based in Dallas, has been targeting companies seeking to reduce carbon emissions, according to the report.
“Switchback has been marketing a $200 million PIPE offering in recent weeks that allows investors to buy shares of Bird at the [initial public offering (IPO)] price,” the report stated.
The startup plans to use the capital to continue operating on the road to profitability while also building out to more markets, according to the report.
In March, Bird said it was aiming to spend $150 million to enter 50 new cities and expand across Europe.
The prospective valuation is below the $2.85 billion Bird reached at the start of 2020, according to the report. The company saw its ridership decline during the pandemic
The startup has spent the $1.1 billion it has raised since its initial round in 2017, the report stated. Last year’s $183 million loss followed 2019’s adjusted 2019 EBITA loss of $226 million.
Bird said it expects to not only cut losses to $96 million this year and $28 million in 2022, but also to be profitable in 2023, with anticipated 2023 revenue of $815 million, according to the report. The startup forecasted revenue of $188 million this year, compared to $151 million in revenue generated in 2019.
The fallout from the pandemic prompted Bird to lay off 406 people, which happened during a Zoom call that left people calling it “dystopian,” per the report.
In related news, the New York City Department of Transportation (NYC DOT) is teaming with Bird, Lime and VeoRide to pilot its first eScooter program. Each ride-hailing platform will roll out some 1,000 dockless scooters, initially in the Bronx.
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