Japanese shared micromobility startup Luup has raised $30 million (4.5 billion yen) in a Series D funding round, consisting of 3.8 billion yen in equity and 700 million yen in debt.
Luup has now amassed a total of $68 million in equity, debt and asset financing to date, according to sources, valued the company at more than $100 million. The company declined to comment on the valuation.
In light of the growing popularity of the sector, the Japanese government has been proactive in relaxing e-scooter regulations to further stimulate the micromobility industry. Starting in July, reforms to the country’s Road Traffic Law will allow users of electric scooters to ride without a driver’s license or helmet, as long as they maintain a maximum speed of 20 kilometers per hour.
In an interview with TechCrunch, Luup CEO Daiki Okai said that the startup’s ambitious plan is to expand its e-scooter and e-bike business in Japanese cities and tourist destinations. Its goal is to achieve a scale comparable to traditional public transport modes, such as trains, which serve hundreds of thousands of commuters every day. Luup also wants to transform underutilized open spaces into “harbours,” or delegated parking stations for its e-scooters and e-bikes, including office buildings, condominiums, storefronts, and smaller urban spaces.
Historically, Japanese cities developed around major train stations, resulting in an inconvenient transportation system for those living far from these central hubs. Luup aims to make the entire city “a station front,” creating a high-density network to close the convenience gap for those who live further from train stations, he said.
Founded in 2018, Luup introduced its shared e-scooters in 2021 and has grown its fleet to approximately 10,000 e-scooters and e-bikes. The company reports more than 1 million app downloads in Japan and has expanded its port network to 3,000 in six cities this year. Luup’s goal is to operate more than 10,000 parking stations by 2025.
Although other companies like Docomo Bike Share and Open Streets also operate shared electric bikes, they lack electric scooters and have fewer ports than Luup. The Japanese startup currently owns the most ports in Tokyo, Osaka, and Kyoto. Some global e-scooter operators have also entered the Tokyo market, such as the US-based Bird and South Korea-based Swing, but have had limited success so far.
With the revised Road Traffic Law taking effect this July, Okai said he anticipates an increase in commuters, including foreign visitors, as electric scooters will no longer require a Japanese driver’s license. He also sees potential in Luup’s network of high-density stations to facilitate expansion into broader infrastructure businesses, such as drone hubs and delivery robots.
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