Zūm – a leading provider of modern student transportation – announced a $140 million Series E funding round. GIC, a leading global investment firm, led this new funding round. And Climate Investment and existing investors, including Sequoia and SoftBank Vision Fund 2, also joined the round, elevating the company’s valuation to $1.3 billion — a major increase from its previous series D raise in Oct 2021. This round brings Zum’s total fundraising to $350 million.
Zum transformed the outdated student transportation industry – which has been riddled with inefficiencies and a lack of transparency, through its innovative approach to digitization and electrification. And Zum unified parents, students, school administrators and drivers on a single personalized and end-to-end technology platform. This platform enabled never-before-achieved levels of visibility and data-backed accountability, which has ushered in a new era of increased safety, reliability, and sustainability for the school districts it serves across the nation in areas like San Francisco, Los Angeles, Oakland, Seattle, Chicago, Nashville, Maryland, and others. Plus, it is also leading the industry forward with the shift to EV school buses in major metropolitan school districts.
The new funding round will accelerate the expansion of Zum’s industry-leading AI-driven technology platform, a key tool in Zum’s effort to fully decarbonize the school bus industry and bolster the fight against climate change. And when combined with the deployment of its fully EV school bus fleets, Zum can turn the largest battery on wheels – batteries 4-6 times the size of EV car batteries – into virtual power plants through its advances in Vehicle-to-Grid (V2G) technology. Zum’s advanced technology platform can now know when to discharge and recharge EV school buses. And for the first time, school buses that would otherwise sit idle in bus depots can now be put to work during evenings and summers and send energy back to the grid.
School buses are considered the most extensive mass transit system in the United States, outpacing airlines, trains, and city buses combined. But as 90% of them run on diesel, they’ve significantly contributed to environmental pollution. Using advanced technology, Zum is rapidly transforming diesel fleets from long-standing pollutants into vehicles fighting climate change through increased route efficiency, incorporating electric buses into school bus fleets, and other strategies.
The company is also accelerating the deployment of its proprietary AI technologies, transforming school transportation into a significant tool for decarbonization. These innovations include a personalized end-to-end technology platform that helps schools increase efficiencies and reduce costs in managing student transportation fleets, which are usually the second biggest budget items for schools. Plus, administrators and drivers have unprecedented visibility so they can optimize routes and deliver real-time updates to parents.
Route optimization is also a critical part of the EV school bus experience, as optimized routes mean less time on the road and more capacity to transfer energy back to the grid. And this technology extends beyond Zum’s fleet, as it is available for use by public school districts in their own internal fleets, amplifying its positive environmental impact.
KEY QUOTES:
“Zum is on a mission to revolutionize student transportation, moving beyond the status quo towards a future where innovative technologies are used to advance sustainability efforts. Securing this latest round of funding, especially in a challenging economic climate, is a resounding vote of confidence in our vision and ability to execute. This investment marks a pivotal moment in our journey, empowering us to turn school buses into powerful tools for environmental change.”
– Zum Founder and CEO Ritu Narayan
“Our investment in Zum highlights GIC’s commitment to funding the transition to net-zero in the real economy. Zum is leading the industry in leveraging technology to create a more modern, sustainable, and safer experience for communities across the US. We are proud to partner with Zum’s impressive leadership team to support their work to transform student transportation, the largest source of mass transit today, into an impactful renewable energy source.”
– Choo Yong Cheen, GIC’s Chief Investment Officer of Private Equity
“Zum is rapidly reinventing the student transportation industry bringing great improvements in quality, efficiency, and sustainability through software and electrification. We are thrilled to continue our partnership with Zum as they continue their national expansion.”
– Bryan Schreier, Partner, Sequoia Capital
“Climate Investment is excited to partner with Zum to provide safe, sustainable transportation for schools. Zum has powerful technology to digitize vehicle fleets, electrify buses, and reduce costs, aligning with Climate Investment’s mandate to decarbonize transportation.”
– Cindi Bough, Climate Investment Managing Director – Ventures
