Japanese startup Luup wants to transform cities into “station fronts”

Luup, a Tokyo-based micromobility company, is on a mission to make the entire city a “station front.”

“Just as railroad companies once developed cities along their lines, we aim to contribute to the value of the surrounding properties by creating Luup stations on properties far from the train station,” Luup CEO Daiki Okai said in a statement.

The Japanese startup provides electric, compact, and single-passenger micromobility sharing services in Japanese cities, namely Tokyo, Osaka, Kyoto, Yokohama, Utsunomiya, and Kobe.

There are already 3,000 Luup stations located in these cities, targeting commuters who need to travel from their homes to transit stations or to their workplaces.

The company has just raised 4.5 billion yen (US$33.5 million) in a new funding round led by Spiral Capital. The round is a mixture of equity issuance and debt and asset financing.

Funding details

• Funding amount: $33,500,000
• Lead investor: Spiral Capital/Spiral Innovation Partners
• Other investors: ANRI, SMBC Venture Capital, Mori Trust, 31 Ventures-Global Brain Growth I, Mitsubishi UFJ Capital, ZENRIN Future Partners, Chiba Dojo Fund, GMO Internet Group, i-nest capital, SMBC Nikko Securities, Green Coinvest, Chishima Real Estate, Mitsubishi UFJ Trust and Banking Corporation
• Stage: Series D and debt
• Source

Starting from July 1, the revised Road Traffic Act will come into effect in Japan, permitting riders to use e-scooters without a driver’s license. Luup expects this to spur e-scooter demand among commuters.

The company said it has received inquiries from property owners, municipalities, and companies to expand its business across Japan. It plans to use the funds to expand its station network, improve its vehicles and apps, and strengthen safety measures.

See also: These are the most active investors in Japan’s startups

Currency converted from Japanese yen to US dollar: US$1 = 134.38 yen.

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