From Vmoto’s press release:
We have regularly reported on Vmoto’s newfound energy and strategy of entering markets through early-stage investments in fleet-operating businesses. Most of these investments have been in the form of scooters, batteries, chargers, and swapping stations.
A couple of days back, Vmoto stitched together another similar relationship in Mexico as it formed a new jointly owned operating company, OMO Watts S.A. de C.V. The company would be owned 18% by OMO Mobility, 20% by Vmoto, and 62% by the key management of OMO Watts. Omo Mobility is a diverse business group in Mexico.
The new company will supply electric scooters, motorcycles, and e-mobility solutions to Mexico’s delivery, transportation, and logistics market. Obviously, Vmoto will provide the fleet and solutions.
Impact
Vmoto feels that they are undervalued on ASX, which sounds plausible. As of trading yesterday, Vmoto had a market cap of less than AUD 31m (USD 19.3m). That appears low for a mostly profitable company with a global footprint and an aggressive expansion spree. Even the IPs for the battery tech, charging systems, scooters, and motorcycles should be more.
