TEL AVIV (Reuters) - WeWork co-founder Adam Neumann has invested $10 million in GoTo Global as part of a $19 million funding round for the vehicle sharing service provider that operates in Israel and Malta.
The fundraising values GoTo Global, a subsidiary of Israel’s Shagrir Group Vehicle Services, at $30 million and Neumann will hold a 33% stake, the company said on Wednesday.
GoTo Global, which plans to expand in Europe this year, provides shared vehicles including cars, mopeds, bicycles and scooters. In 2019 it had revenue of $13.2 million and provided more than 1.3 million trips.
GoTo Global CEO Gil Laser said the alternative transportation market is expected to exceed $600 billion by 2025. The coronavirus pandemic increases the potential for the company’s market as people avoid public transportation, he said.
In May Neumann filed a lawsuit against Japan’s SoftBank Group and its Vision Fund for terminating a $3 billion tender offer to WeWork’s shareholders.
The office-sharing startup has gone through a tumultuous period since abandoning its initial public offering in September. It pushed out Neumann last year and has seen occupancy rates plummet amid the coronavirus pandemic.
Reporting by Tova Cohen; Editing by Steven Scheer