TPG has invested $100m in Zum, valuing the US student transportation and mobility company at approximately $1.7 billion. The investment, through TPG’s Rise Funds impact investing platform, increases Zum’s total capital raised to around $430m, according to a report by Reuters.
The valuation represents a step up from its 2024 Series E round, when the company was valued at $1.3bn.
Founded in 2016, Zum provides software and services designed to modernise school transportation in the US, including route optimisation tools, tracking systems and electric bus solutions. The company says it currently serves more than 4,500 schools across 17 states.
Zum recently reached breakeven on adjusted EBITDA, according to the company, and plans to use the new capital to expand into additional US states and develop its Connected Mobility Experience platform. The business is also considering acquisitions, while keeping organic growth as its main focus, with a potential IPO in the longer term.
TPG said the market for student transportation is highly fragmented and valued at roughly $50 billion, with significant opportunity for consolidation and technology-driven efficiency gains. As part of the transaction, TPG managing partner Steve Ellis will join Zum’s board.
