Lime taps Uber as anchor investor ahead of $1.8B IPO
Key Takeaways
- Lime will name Uber as anchor investor in its updated IPO prospectus, expected to be filed Monday
- The scooter company targets a $1.8 billion valuation and plans to raise roughly $200 million
- Uber has guaranteed a $115 million Lime loan due in September, deepening its financial ties to the micromobility firm
Lime, the electric scooter and bike company, plans to name Uber Technologies as an anchor investor when it files an updated IPO prospectus on Monday. According to The Information, Uber will invest a "meaningful" amount in the offering and appear on the cover of the filing. The San Francisco startup is targeting a $1.8 billion valuation and aims to raise about $200 million.
Neither Uber nor Lime responded to Reuters' requests for comment. Lime originally filed to go public in the United States in May, making it one of the first major micromobility companies to attempt a U.S. IPO since Bird's ill-fated SPAC merger in 2021.
Why Uber's backing matters for the Lime IPO
Uber and Lime have been intertwined since 2020, when Uber sold its struggling Jump bike business to Lime and took an equity stake. The ride-hailing giant owns roughly 11% of Lime, and Lime's scooters and bikes are bookable directly through the Uber app. Having Uber step up as an anchor investor signals confidence in Lime's business at a time when public market investors remain skeptical of mobility startups.
The financial ties run deeper than equity. Uber has guaranteed a $115 million Lime loan that comes due in September, according to The Information's report. That guarantee gives Uber both upside in a successful IPO and exposure if Lime stumbles.
Lime plans to use IPO proceeds to fund operations, repay all its debt, and acquire complementary technologies or intellectual property. Paying off that Uber-guaranteed loan would clean up the balance sheet and remove a potential conflict as Lime enters public markets.
What Lime's $1.8 billion target says about micromobility
The $1.8 billion valuation Lime is seeking represents a sharp discount from the $2.4 billion valuation it carried in its 2020 funding round. That drop reflects the brutal correction in mobility stocks over the past three years. Bird, once valued at $2.5 billion, filed for bankruptcy in 2023. Investors now want proof of profitability, not promises of growth.
Lime has that proof. The company reported profitability in 2023, a rare achievement in the capital-intensive scooter industry. Its May filing showed a jump in annual revenue, though specific figures were not disclosed in the report. Lime operates in more than 280 cities across 30 countries and has completed over 400 million rides since its 2017 founding.
The road show begins this week, where Lime's executives will pitch institutional investors on the offering. Anchor investors like Uber commit early and often receive favorable allocation, signaling to other investors that sophisticated buyers see value in the deal.
What this means for Uber's multimodal strategy
For Uber, doubling down on Lime fits its broader push to own the urban transportation stack. CEO Dara Khosrowshahi has repeatedly emphasized that Uber wants to be the app for all trips, whether by car, scooter, bike, or public transit. A successful Lime IPO validates that strategy and gives Uber a liquid stake it can hold or sell.
The anchor investment also protects Uber's existing position. If Lime's IPO falters and the company needs rescue financing, Uber's 11% stake and loan guarantee mean it would bear significant losses. By committing fresh capital, Uber is betting that Lime crosses the finish line strong.
Frequently Asked Questions
When is Lime's IPO?
Lime filed to go public in May 2025 and plans to begin its investor road show this week. The updated prospectus naming Uber as anchor investor is expected Monday. The exact IPO date has not been announced.
How much is Lime worth?
Lime is targeting a $1.8 billion valuation in its IPO, down from its $2.4 billion private valuation in 2020.
What is an anchor investor in an IPO?
An anchor investor commits to buying a significant portion of shares before the IPO prices, signaling confidence to other investors. Anchor investors typically appear on the cover of the prospectus and may receive favorable share allocation.
How much does Uber own of Lime?
Uber owns approximately 11% of Lime, acquired when Uber sold its Jump bike business to Lime in 2020.
Is Lime profitable?
Yes. Lime achieved profitability in 2023, distinguishing it from competitors like Bird, which filed for bankruptcy.
Logicity's Take
Uber's anchor investment is as much defensive as it is bullish. With $115 million in loan guarantees on the line and an 11% stake already in hand, Uber cannot afford a weak Lime IPO. By committing publicly, Uber is trying to create momentum that attracts other institutional investors. The real test comes in the road show: can Lime convince skeptics that it solved the unit economics problems that killed Bird? Profitability helps, but public market investors will scrutinize whether Lime can grow while staying profitable.
Another story examining how companies and public interests intersect in major tech financing
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Source: Tech-Economic Times / ET
Manaal Khan
Tech & Innovation Writer
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