Via Stock Rises Slightly Above IPO Price After Slow Start
▼ Summary
– Via’s IPO opened below its $46 price but recovered to close slightly higher at just over $49, valuing the company at roughly $3.9 billion.
– The company raised $492.9 million in total, with $328 million for Via and $164 million for existing shareholders.
– Via’s core business is its on-demand routing algorithm, which it sells to 689 cities and transit agencies for microtransit services.
– The CEO stated that IPO proceeds will fund growth, sales, marketing, and potential acquisitions, similar to past purchases like Remix and CityMapper.
– Via reported $205.7 million in revenue for the first half of 2025 with a reduced loss of $37.5 million and expects around $429 million in annual revenue.
Shares of transit software firm Via ended their first trading day modestly higher than the initial public offering price, following a cautious opening that saw the stock briefly dip below its debut valuation. The company’s market debut reflects growing investor interest in technology that supports public and on-demand transportation systems.
Via priced its IPO at $46 per share, raising approximately $493 million in total. Trading began Friday afternoon with shares opening at $44, but they gradually climbed to finish just above $49. That closing price values the company at around $3.9 billion. Of the total offering, Via raised roughly $328 million, while existing shareholders sold an additional $164 million in stock.
Daniel Ramot, Via’s CEO, expressed satisfaction with the market reception. “We’re extremely pleased with today’s outcome,” he remarked. “It reflects the strength and resilience of our business model, and we’re grateful for the incredible support from our team, partners, and investors.”
Founded in 2012, Via initially operated its own fleet of shuttles before pivoting to become a technology provider. Its core product is an advanced routing algorithm that uses real-time data to optimize microtransit services. Today, the platform serves 689 cities and transit agencies worldwide, helping them deploy efficient on-demand transportation solutions.
Ramot indicated that proceeds from the offering will be directed toward growth initiatives, including sales, marketing, and potential acquisitions. “We aren’t raising capital simply to fund operations,” he explained. “We see opportunities to use our public stock as currency for strategic acquisitions, similar to our purchases of Remix and CityMapper.”
Via acquired Remix, a transit planning software company, in 2021, and integrated CityMapper’s journey-planning technology in 2023. Ramot emphasized that future acquisitions would focus on complementary technologies rather than purely competitive takeovers.
Financially, Via has demonstrated strong growth, with revenue increasing by approximately 30% year-over-year. The company anticipates full-year 2025 revenue to reach around $429 million. For the first half of the year, Via reported revenue of $205.7 million, though it remains unprofitable. Its net loss for the period narrowed to $37.5 million, down from $50.4 million during the same period the previous year.
While Ramot stopped short of providing a specific timeline for profitability, he affirmed that the company is moving steadily in that direction. He also highlighted the social impact of Via’s technology, which primarily serves public transit systems and benefits riders who depend on affordable and accessible transportation.
“Many of the people we serve are low-income individuals, students, and persons with disabilities,” Ramot noted. “It’s rewarding to see that investors are supporting a business that makes a meaningful difference in public mobility.”
(Source: TechCrunch)
