Helbiz bought Wheels to double revenue and save its stock; investors dumped it further

Helbiz runs shared micromobility - e-bikes, scooters and mopeds - and has been listed on Nasdaq since August 2021.

Buying Wheels would double Helbiz's annual revenue past $25M in 2022 and push higher-margin operations toward profitability, saving its stock.

Helbiz went public in August 2021 at $10.20 a share; by late 2022 it traded below $1 and faced Nasdaq delisting, in a shared-micromobility industry where nearly every operator was still battling for profitability.

The intent to acquire Wheels became a closed deal by October 2022. Helbiz promised over $25 million of 2022 revenue by tapping Wheels' base of 5 million riders and new markets such as Los Angeles. CFO Giulio Profumo said the combined company would reach positive gross margin within nine months and operating profitability within 24, restructuring for higher Wheels margins, savings on redundancies and lower cost of revenue. Wheels had furloughed a handful of employees around the signing; a Helbiz spokesperson said some were brought back and no layoffs were planned.

The market delivered its verdict immediately: Helbiz shares fell 8.10% to close at $0.28 the day TechCrunch assessed the deal, roughly 65% below the level when the acquisition was first announced.

The stock was heading for delisting below Nasdaq's $1.00 floor, so management needed a growth story fast.

Wheels brought 5 million riders and a higher-margin business Helbiz planned to lean on for cost savings.

Both companies were unprofitable, so the bet doubled down on scale as the only path to sustainability in micromobility.

Dwindling cash reserves and an ambitious gross-margin target made investors doubt the promised numbers.

Restructuring and 'efficiency' language echoed the prelude to layoffs at Bird and Tier, deepening market skepticism.

An acquisition can promise scale, but when the buyer is burning cash and racing a delisting clock, investors price the promise against the balance sheet - and the story stops working.

As of October 25, 2022, Helbiz needed its stock to rise 257% and hold for at least 10 consecutive trading days before January 16, 2023 to regain Nasdaq compliance. Wheels staff furloughed around the signing had partially returned, with no layoffs planned according to the company, while restructuring plans targeted savings across the combined entity. TechCrunch framed the deal as a lifeline for a company whose cash reserves were dwindling per its second-quarter earnings report.