How This Estonian Startup Beat Uber At Its Own Game

While the world’s leading ride-sharing business was blowing billions of dollars trying to buy global domination, Markus Villig was busy doing the opposite with Bolt. Working on a meager budget, he built a $8.4 billion operation – and an $700 million fortune — by focusing on overlooked markets in Africa and Europe.that he was in the wrong business.

Villig’s thrifty approach has paid off. The business now has more than 3 million drivers, operates in 45 countries and generated $570 million in 2021 revenue. As of its last fundraising round, in January 2022, the company was valued at $8.4 billion; startup values have since tumbled, and the 29-year-old Villig’s 17% stake is currently worth $700 million,On occasion, Martin, who is 15 years older than Markus and a veteran of the Estonian startup scene, had to dip into his savings to make payroll.

Villig now has the money—and the mandate—to supercharge Bolt’s growth, but he needs to be careful to avoid falling into the same traps that snared Uber. While raising Uber-like venture funding in 2021, Bolt also posted Uber-like los­ses of $622 million. Half of that was attributable to repaying a pandemic-era loan, but there were also expensive volume-boosting discounts for riders and drivers.

At least one pitfall he has avoided is the spendthrift tendency of American founders. While some VCs are trying to clamp down on their startups using private jets, Bolt investors brag of Villig’s frugality. Bolt doesn’t issue credit cards, phones or other corporate goodies to its employees, and until 2019 Villig shared a room when traveling to save on hotel costs.

Source: Financial Digest (financialdigest.net)

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