Citymapper crowdfunding campaign gets £35m investor interest

The travel app Citymapper has received £35m in expressions of interest for a planned crowdfunding campaign which it hopes will capitalise on the restart of travel.

The London headquartered app, which provides route guides and live public transport data, is set to launch the crowdfunding effort on Thursday. The start-up said the interest was far above the number of shares on offer, although it has yet to begin its formal offering on the funding site Crowdcube.

The outpouring of interest comes despite Citymapper warning on its registration website that during the pandemic travel volumes on its app dropped by 90pc. The company said it had invested in alternative transport options, such as cycling and micromobility. It has added options such as Ford-owned Spin scooters to its app.

While its main app remains free, Citymapper has attempted to monetise its popularity with a membership option.

In February last year, it also launched a subscription-based “Club” function, costing £2.99 per month, that added premium features such as a voice assistant and weather warnings. A higher tier of membership lets users suggest new features for the app and costs £100 per year.

Its decision to turn to crowdfunding comes after the start-up raised just over £10m in 2020. Its investors include Index Ventures and Balderton Capital.

But despite raising tens of millions of pounds from investors, the 10-year-old company has yet to turn a profit.

According to its latest accounts, in 2019 it burnt through £8.9m, although revenues increased from just £516,000 the year before to £5.8m.

In 2019, it launched a travel card, which costs £33 a month and provides unlimited public transport in parts of London. However, usage fell during the pandemic as travel ground to a halt. Citymapper’s crowdfunding website says investors could stand to get a return “through an IPO, sale or merger of Citymapper”, but warns that may “lose [their] investment if the company is unsuccessful”.

Bill Earner, Citymapper managing director, said: “We’re really excited and humbled by all the support we’ve received so far.”