11.12.2023 | Case | Nordic SME | Transport sector | Finland
GreenMobility provides an entirely electric, free-floating carsharing platform, reducing traffic congestion and transport-related emissions. The company received financing from Nefco – the Nordic Green Bank – to help with its expansion to Helsinki and grow its fleet of electric vehicles (EVs), furthering the company’s mission to transform the sustainability of the urban commuting landscape.
Creating better urban environments through sustainable mobility
Private car ownership is a major contributor to global carbon emissions. In 2022 alone, privately owned cars and vans were responsible for more than 25% of global oil use and about 10% of global energy-related CO2 emissions. Alongside the CO2 emissions generated by petrol and diesel cars, privately owned cars contribute significantly to traffic congestion as they usually carry fewer passengers than communal alternatives. Another drawback of privately owned cars is the amount of physical space they take up, with garages and parking spaces filling precious urban space.
To combat the pressing issues of traffic congestion and pollution, Denmark’s GreenMobility is reshaping urban mobility through its free-floating EV carsharing platform. GreenMobility provides easy, on-demand, low-emission mobility services. Everything happens inside a single app. Originating in Copenhagen, GreenMobility’s fleet of over 1,600 electric cars covers multiple major cities across Western and Northern Europe, from Brussels to Helsinki.
Electric vehicles are the future of city commuting
GreenMobility’s sustainability mission is driven by the need to reduce emissions from private vehicles, alleviate congestion and make urban spaces more appealing. GreenMobility’s carsharing options do not compete with public transport. Instead, the platform is designed in recognition of the fact that city dwellers will sometimes face situations that require flexible access to a car, for example when a bus or train line does not service an area that a commuter needs to reach.
Many cities have great charging infrastructure which reassures consumers that carsharing with electric vehicles works well.Anders Wall, GreenMobility’s CFO
“Our primary focus is improving city mobility through the service that we provide. The more alternatives we offer to privately owned polluting cars, the better the environmental outcomes for the city,” says Anders Wall, GreenMobility’s CFO. The sharing economy is another important factor propelling GreenMobility’s offering. According to Graphical Research study, it is estimated that Europe’s carsharing market will be worth over USD 4 billion by 2024.
Wall explains that increasing environmental awareness of transport-related issues has fed into GreenMobility’s development: “When we started, one of the first things we looked at was the EV charging infrastructure in cities. Initially, it wasn’t something we could always rely on. Today, many cities have great charging infrastructure. Our challenge now is reducing costs so we can grow our EV fleet and changing ingrained habits to reassure consumers that carsharing with EVs is something that works well. We are always looking at ways of making our service quicker, easier and cheaper for our users.”
GreenMobility’s sustainability mission is driven by the need to reduce emissions from private vehicles, alleviate congestion and make urban spaces more appealing. Photos: GreenMobility
Nefco financing enables expansion to Finland
In September 2022, thanks to a EUR 1 million loan from Nefco, GreenMobility expanded its EV fleet to Helsinki. “Nefco has been the ideal partner for our Finnish expansion. The loan from Nefco has directly funded 115 new EVs in Helsinki. Nefco has been instrumental in helping us reach our business goals in Finland as well as achieve our purpose of improving urban environments and reducing emissions caused by private transport,” explains Wall.
The environmental benefits of GreenMobility’s growth in Finland are numerous. The electricity used to charge the cars is generated directly from wind power. EVs reduce black carbon, SO2 and NOx and help to cut C02 emissions by replacing fossil fuels.
Nefco has been a great partner and an important collaborator with constructive discussions. Working closely with Nefco can help to generate valuable insights.Anders Wall, GreenMobility’s CFO
Alongside the loan, Nefco has provided valuable feedback to GreenMobility. “Of course, Nefco’s financing has been crucial, but they have also provided insights and suggestions on how we can improve operational efficiency. They are genuinely dedicated to our success, offering a unique vantage point for identifying untapped potential and addressing unforeseen challenges.” says Wall.
Søren Berg Rasmussen, Investment Manager at Nefco, has been working closely with GreenMobility throughout the collaboration. “GreenMobility is a great example of an impact company providing a foundational service that ensures comprehensive, shared urban mobility. This will help to enable a painless transition away from private car ownership and open up the many positive environmental benefits that will follow from such a transition.”
Dedication to the circular economy in all actions
GreenMobility’s commitment to sustainability extends beyond operating its fleet of EVs. From repurposing tyres for recreational activities to reusing car parts and components for other automotive applications, GreenMobility’s operations minimise waste and maximise resource efficiency.
GreenMobility is a great example of an impact company providing a foundational service that ensures comprehensive, shared urban mobility.Søren Berg Rasmussen, Investment Manager at Nefco
In terms of assessing the environmental impact of their offering, GreenMobility uses several key performance indicators to ensure they are on the right track. A key metric is CO2 savings, which is tracked on a monthly basis and recorded in quarterly reports.
Central to this is a real-time monitoring system that enables 24/7 tracking of the fleet’s activity. The live data, which includes CO2 savings from each trip, provides a comprehensive overview of the impact of GreenMobility’s electric cars. Hourly updates keep the team informed of their ongoing contributions to reducing carbon emissions.
- Reduce transport emissions.
- Accelerate the transition to sustainable urban mobility.
- Minimise waste and maximise resource efficiency.
A clear road ahead for GreenMobility
GreenMobility’s expansion to Finland, enabled by Nefco’s financing, is just the latest milestone in the company’s mission to offer drivers low-emission carsharing services. “We aspire to be a leader in the European mobility market. By 2030, we aim to have 10,000 EVs in our fleet and operate in 35 cities. The tide of history is with us. The politics of mobility infrastructure in cities is increasingly changing, favouring companies like ours. Our competitors are slowly transitioning from fossil fuel cars to EVs, but we have a head start because this has been our sole focus since our founding,” says Wall.
The politics of mobility infrastructure in cities is increasingly changing, favouring companies like GreenMobility.
Wall also advices other sustainably minded companies that are seeking investment “Firstly, I would emphasise the need to establish clear KPIs to support your green business case. It’s crucial for securing funding. Secondly, I would say: reach out to Nefco. They have been great partners for us and an important collaborator when it comes to constructive discussions on resolving business challenges. They also have an extensive network of other financing partners that may be able to help you. Working closely with Nefco can help to generate valuable insights.”
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Check out Nefco’s loans and equity investments for scaling up Nordic green solutions on global markets. View also our other financing options for operational growth or financial support for new market entry.