Lime plans to name Uber as anchor investor in IPO, The Information reports

Lime plans to name ride-hailing giant Uber as an anchor investor in its U.S. initial public offering (IPO), according to a report by The Information. The move comes as Lime seeks to raise approximately $200 million at a $1.8 billion valuation to clear debt and fund operations.

Why is Uber acting as an anchor investor for Lime?

Uber is expected to provide a “meaningful” investment in the deal, The Information reported Sunday. This status as an anchor investor will be listed on the cover of an updated IPO prospectus that Lime plans to file on Monday. The move strengthens a pre-existing relationship, as the San Francisco-based startup is already backed by Uber Technologies.

The financial ties between the two companies extend beyond equity. According to the report, Uber has guaranteed a $115 million Lime loan that is due in September. This guarantee suggests a strategic interest in ensuring Lime’s financial stability as it transitions to a public company.

How much is Lime aiming to raise in its IPO?

Lime plans to start talks with investors during a roadshow this week to raise about $200 million, The Information reported. The company is targeting a valuation of approximately $1.8 billion. While Reuters could not immediately verify these specific figures, Lime’s May filing for the IPO already indicated a jump in annual revenue.

This valuation reflects the current state of the micromobility market, where companies are shifting from “growth at all costs” to sustainable profitability. By securing a known entity like Uber on its prospectus, Lime aims to validate its $1.8 billion price tag to the broader market.

What will Lime do with the IPO funds?

Lime intends to use the proceeds from the IPO for three primary purposes: funding daily operations, repaying all existing debt, and investing in complementary technologies or intellectual property. According to the report, the company may also use the capital to acquire assets that expand its service capabilities.

Repaying debt is a critical priority. With a $115 million loan guaranteed by Uber due in September, the IPO serves as a primary vehicle for Lime to clean up its balance sheet. This move mirrors previous trends in the tech sector where late-stage startups use public offerings to pivot from venture debt to equity financing.

How does this impact the micromobility market?

The close alignment between Uber and Lime suggests a trend toward “super-app” ecosystems. Rather than competing directly, ride-hailing platforms are increasingly integrating third-party micromobility services to capture more of the urban transport market. This is a shift from the early “scooter wars” where companies fought for street corners through aggressive expansion.

Industry data shows that users prefer a single interface for all transport needs. By backing Lime, Uber ensures a steady supply of e-bikes and scooters for its users without having to manage the heavy operational costs of hardware maintenance and charging. For more on urban transit trends, see Reuters Business.

Frequently Asked Questions

When is Lime’s IPO happening?
Lime filed to go public in May and plans to conduct a roadshow this week to attract investors.

What is Lime’s projected valuation?
According to The Information, Lime is seeking a valuation of about $1.8 billion.

What is an anchor investor?
An anchor investor is a large institutional investor that commits to buying a significant amount of shares in an IPO, providing credibility and stability to the offering.

Is Uber buying Lime?
No. The report indicates Uber is acting as an anchor investor in the IPO, not acquiring the company entirely.