Tallinn-based startup Elmo has recently secured €2.6 million in funding from a growth capital fund and other investors, including Highgoal Capital Management, FlyCap, Barolo Invest, and SAGGIS. The startup specializes in the development of deep-tech solutions for remotely controlled cars and also provides eco-friendly car-sharing services. Elmo plans to use the funds to accelerate the licensing of its cutting-edge remote control technology in foreign markets, expand its team of experts to develop next-generation technologies, and prepare for the launch of eco-sustainable remotely controlled cars on public roads.
Teledriving and driverless transportation are potentially the biggest and most positive changes in the mobility sector in our generation. Global urban mobility market is in flux due to shifting consumer preferences and technological advances. City governments reduce private car ownership in urban areas, consumers seek sustainability, convenience and affordability. Car ownership is declining in favor of public transport, bicycles, car sharing clubs, and ride hailing.
“We are happy to contribute to an Estonian technology company such as Elmo which is one of the first in the world to put remote control technology based services into daily practical use. We see remote control technologies and the related services as a necessary step in bringing fully autonomous driving technologies into our daily life in the future,” said Ragnar Meitern, head of the lead investor’s representative Highgoal Capital Management.
Highgoal Capital Management OÜ is a technology focused small alternative funds manager with a track record of identifying and backing some of the most successful founders and companies in the mobility business, their investment portfolio including Bolt and Planet42 among others. The company has experience in in European, Middle Eastern and African markets and has offices in London and Tallinn. FlyCap is a Latvian growth capital fund that offers growth capital to medium-sized companies in Latvia and elsewhere in Europe. Barolo Invest and SAGGIS are Estonian capital based investors. The financing transactions were counselled by KPMG Baltics and Keystone Advisers.
“It is a great recognition to the current work of our team when experienced investors are willing to contribute to our success in today’s financial climate, and a sign that Elmo’s position is strong in the fast-growing sector of remotely controlled vehicles,” said Enn Laansoo Jr., the founder and CEO of Elmo. “Although Elmo’s greatest competitive edge has so far been the development of the technology as well as the provision of a short-term rental service in one company, we will now be able to conclude the separation of the technology and the short-term rental business into subsidiaries in order to bring aboard new investors with a more specific focus.”
Last year, Elmo became the world’s first deep-tech company to bring its road legal remotely controlled cars and drivers licenced by the Transport Administration’s into a real-life car sharing service. Remotely controlled cars have become a daily service on the streets of Tallinn as well as Tartu. For the purpose of licencing the technology, Elmo’s remotely controlled cars have been driven and introduced to customers in the streets of Paris, Munich, Hannover, Zurich, Vienna, Helsinki, Los Angeles and many other big cities. By today, there are ongoing negotiations with more than 50 customers interested in the licensed technology and preliminary work is in process to start driving on the public roads of at least two foreign cities this summer.
