About TB 1 Holdings Limited ("Tembici")

Founded in 2010 with the backing of Itaú, Tembici is the largest micromobility operator in Latin America. The company has facilitated over 2.5 million bicycle rides in major urban centers across Brazil, including Rio de Janeiro, São Paulo, Salvador, Recife, and Porto Alegre, as well as in Santiago, Chile, and Buenos Aires, Argentina.

Tembici's sustainable business model and rapid scalability have made it the leading player in the Latin American market. A key factor in Tembici's success is its integration with public transport systems in urban areas, providing essential first-last mile commuting solutions that address the challenges posed by limited public transportation.

Industry Overview in Latin America

The micromobility sector in Latin America has experienced significant growth driven by urbanization and increasing transportation demands. As cities expand, traditional public transit systems often struggle to meet the needs of rapidly growing populations. This creates a substantial opportunity for innovative transportation solutions such as bike-sharing services.

In response to these challenges, governments and municipalities are increasingly investing in sustainable transport infrastructure. The rise of micromobility solutions complements public transit, offers affordable alternatives, and reduces congestion in urban areas. With a projected addressable market of USD 12 billion, the sector is poised for further expansion.

Moreover, the post-pandemic landscape has heightened the demand for safe and flexible transportation options. As cities prioritize sustainability and reduce carbon footprints, micromobility solutions have become integral to urban planning efforts, contributing to environmental goals and healthier lifestyles.

The Rationale Behind the Deal

The investment in Tembici was motivated by the company's dominant position, holding an impressive 80% market share in Latin America. With a robust network of docking stations, Tembici is well-positioned to address the growing need for sustainable transport solutions.

Collaborating with Itaú, one of Brazil's largest banks, has enabled Tembici to accelerate its growth effectively. The strategic partnership not only strengthens Tembici's market presence but also enhances its visibility and operational capabilities.

About the Investor

57 Stars LLC is a globally focused independent alternative investment manager with over USD 4 billion in commitments raised and managed. Established in 2005, the firm specializes in investing in high-growth sectors driven by technological innovation and market disruptions. With a team of around two dozen professionals operating in six locations globally, 57 Stars aims to deliver superior risk-adjusted returns within a sustainable development framework.

The 57 Stars NextGen Mobility Fund represents the firm's investment strategy focused on advancing next-generation sustainable transport solutions. By leveraging its extensive network in the global private equity and venture capital ecosystems, the fund is positioned to capitalize on emerging trends in the mobility sector.

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The partnership between 57 Stars and Tembici presents a highly promising investment opportunity. Tembici's market leadership and strong operational model underscore its potential for sustained growth in the burgeoning micromobility sector in Latin America.

Investing in Tembici aligns with broader trends of urbanization and increased demand for sustainable transportation. As cities grapple with congestion and pollution, Tembici's bike-sharing solutions offer a compelling alternative that not only enhances mobility but also contributes to environmental sustainability.

The strong backing from a reputable investor like 57 Stars further bolsters confidence in Tembici's business model and growth trajectory. Overall, the investment is expected to yield positive returns while advancing the goals of sustainable transportation in key urban markets.

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