Facedrive, an eco-conscious ridesharing startup based in Toronto, announced plans to conduct a private placement offering as it prepares for a European expansion and the launch of its food delivery platform.
“We are working hard to build a full ecosystem with rideshare, food service, home and work deliveries, entertainment, gamification and social components.”
Through the private placement Facedrive, which is listed on the TSX Venture Exchange, hopes to raise gross proceeds of $10 million at a price of $9.00 per share. This would be a non-brokered private placement, meaning the company will sell shares directly to investors. The funding would be used for Facedrive’s general corporate purposes and to augment the company’s cash reserves. The private placement offering is subject to approval by the TSX Venture Exchange.
The Toronto-based startup has also entered into a strategic advisory services agreement with London-based corporate finance business Craven Street Capital to assist Facedrive in executing its European expansion plans.
Craven Street will assist Facedrive in identifying expansion opportunities, establishing relationships, and identifying strategic acquisition and investment opportunities in Europe.
“We believe that Facedrive fulfills serious gaps in several underserved European markets,” said Soondra Appavoo, CEO of Craven Street. “We look forward to working with Facedrive to evaluate and target strategic opportunities throughout Europe.”
Facedrive said the expansion to Europe is a strategic priority, noting a “greater degree of environmental consciousness” compared to its North American counterparts. The company has previously mentioned plans to expand into both Europe and the United States, noting the expansions would take place in the third and fourth quarters of 2020.
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At the same time, Facedrive has also been building out a new food delivery service. Restaurant partners are able to sign up with Facedrive Foods delivery service starting this week. Facedrive Foods, the food delivery branch of the platform, was first revealed last month and created specifically with the intention to support residents, businesses, and drivers during the COVID-19 pandemic.
“We are working hard to build a full ecosystem with rideshare, food service, home and work deliveries, entertainment, gamification and social components all in a single app,” said Facedrive chairman and CEO Sayan Navaratnam. “This provides discerning, environmentally conscious and busy customers the ability to meet their needs efficiently and effectively while doing good for their planet and communities.”
Similar to its ridesharing service, Facedrive Foods will donate a portion of its fees to offset the carbon emissions from food delivery towards tree planting initiatives within the communities it operates.
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The announcement of the operational launch of the Facedrive Foods platform comes shortly after Facedrive entered into a purchase agreement to acquire certain assets of Foodora Canada, which ceased operations in Canada last month. Foodora Canada began bankruptcy proceedings at the end of April, declaring a $4.7 million CAD debt owed to both restaurants and creditors.
Facedrive told BetaKit the deal with Foodora has not yet closed, and the parties are currently awaiting court approval.
Facedrive also recently announced that HiRide, a Facedrive subsidiary that was acquired in April, has launched HiQ, a social gaming application designed to encourage people to socialize and keep their minds stimulated by competing during the COVID-19 pandemic.
The HiQ app’s algorithm is intended to match users that have similar interests and create peer-to-peer connections remotely. App users will also be able to win cash prizes as well as merchandise and incentives by competing in weekly trivia challenges.
Image source Facedrive via Facebook.
