Vancouver-based transit software startup Spare has secured a $42 million Series B round as it looks to carve out a place in the paratransit sector.
Spare is currently present in more than 200 cities across North America, Europe, and Asia.
The round was led by return investor Inovia Capital with participation from other returning investors, including Kensington Capital and Nicola Wealth. The funding will be used to expand its global reach into more transit agencies, accelerate the development of its AI-driven platform, and meet growing demand for its transit solutions, particularly in the paratransit sector, the startup said in a blog post. BetaKit has reached out to Spare for more details but did not hear back by press time.
Founded in 2015, Spare’s platform works directly with transit agencies to provide transportation services and dispatch rides based on riders’ individual needs. Transit agencies can integrate with public and private sector transportation services, including ride-sharing companies like Uber and Lyft, or offer on-demand paratransit services for individuals with disabilities or limited mobility.
Spare said it has recently announced partnerships with transit agencies in Dallas, the Bay Area, and North Carolina, adding the agencies are using its platform to power their demand response services for paratransit or microtransit. Spare said one of its “pioneering projects” in paratransit took place in Austin, Texas, where it “modernized” the “decades-old” system of the city’s CapMetro Access transit agency.
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“Spare has been instrumental in helping CapMetro Access transform our paratransit service, making it more efficient and responsive to our community’s needs,” CapMetro vice president of demand response Art Jackson said in a statement. “Their innovative platform and dedicated support have allowed us to offer a more equitable transit solution.”
Spare is currently present in more than 200 cities across North America, Europe, and Asia. While its focus has been on paratransit, Spare CEO Kristoffer Vik Hansen said in an interview with TechCrunch that the startup is “exploring ways to incorporate non-emergency medical and school transportation services.”
After securing a $6 million seed round led by Japanese vehicle manufacturer Mitsubishi in 2019, Spare went on to secure an $18 million Series A round in 2021 that resulted in Inovia partner Todd Simpson joining the board. Following a partnership with ride-hailing app Lyft in 2022, Vik Hansen indicated to BetaKit that the company was “likely looking” to raise a Series B round in 2023.
Earlier this year, Spare also received a $10-million growth capital injection from CIBC Innovation Banking to aid in the development of more artificial intelligence-based solutions for its platform.
Feature image courtesy Spare.