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TPG invests $100 million in Student Mobility Company Zum

Zum reported on Thursday that a private equity firm, TPG, had invested $100 million in 'Zum.

Zum reported that the valuation is higher than Zum's previous 2024 Series E round of funding, where it was valued at $1,3 billion. This is because the company has reached breakeven adjusted earnings prior to interest, taxes depreciation and amortization (EBITDA).

TPG's Rise Fund is making the?investment, which targets both financial returns and measurable outcomes in social and environmental areas. Zum's capital has now reached $430 million.

In 2016, Ritu Narayan founded Zum, a company that provides software and services to modernize the fragmented U.S. student transportation system. Zum offers electric buses, route optimization, and tracking tools. The company said that it served?more then 4,500 schools in 17 states.

Narayan told.

She said, "School districts are seeing reduced absences and better learning outcomes...We would consider that student transportation is about more than just transportation. It's about accessing education."

She said that TPG's investment would help the company to expand into additional states and develop its technology platform. It may also pursue acquisitions and consider an IPO in the future. But organic growth is their top priority.

Steve Ellis, managing partner at TPG's Rise Funds, said: "This business... operates in a large, highly fragmented, $50 billion market." "None [of the] existing legacy operators has built a fully integrated, modern technology stack...It gives us a real right of victory." The company announced that Ellis would join the board of directors as part the investment. Abigail Summerville reported from New York and edited by Echo Wang, Lincoln Feast.

(source: Reuters)