DFC and IDB Invest Partner With Tembici to Scale Up Urban Electric Bike-Sharing Services in Latin America

Media Release
  • The project will help expand Tembici’s electric bicycle assembly plant in Manaus (Brazil), supporting local employment in alternative economic sectors and reducing the economic incentive for deforestation.

DUBAI, UAE – The U.S. International Development Finance Corporation (DFC) and IDB Invest are co-investing a combined $23 million in equity in micro-mobility platform Tembici, to support the expansion of bicycle-sharing services in Latin America.

The project is expected to grow Tembici’s active users in Brazil, Colombia, Chile, and Argentina from 300,000 in 2023 to more than 1 million by 2029. The number of trips is projected to more than triple, to close to 600 million by 2029. This will significantly reduce annual CO2 emissions, equivalent to removing 15,000 passenger cars off the road, by increasing the number of bike trips in cities as an alternative to car. Tembici will help protect both the health of residents and the climate globally.

DFC’s investment totaled $15 million. IDB Invest’s participation includes $5 million of its own capital and $3 million of blended finance from the Finland-LAC Blended Finance Climate Fund.

Tembici operates one of the largest shared-bicycle networks in the world and offers a solution to municipalities and commuters facing a variety of mobility challenges, including high congestion, unaffordability of automobiles, and underinvestment in urban transportation infrastructure.

The company is also domestically producing its own electric bicycles (e-bikes), which allow for longer trips than conventional bicycles and demand less physical effort, making it a more attractive alternative for commuters currently using cars or motorbikes. The assembly plant, located in the Amazonian state of Manaus, is expected to produce more than 50,000 new bicycles from 2023 to 2029, supporting local employment and driving sustainable economic development of the Amazon region.

DFC’s investment will help advance the G7’s Partnership for Global Infrastructure and Investment (PGI) by expanding sustainable public transportation and strengthening infrastructure in Brazil.

As part of its development impact mandate, IDB Invest is providing advisory services in climate change and digital transformation to help scale Tembici’s innovative Digital Measuring Reporting and Verification (DMRV) system, currently under development. The DMRV system is a strategic component for the carbon certification process that will set a milestone for carbon credits transparency and integrity, using digital technologies to measure, report, and verify greenhouse gas emission reductions and automate carbon assets transactions.

The transaction illustrates the commitment by DFC and IDB Invest to climate change mitigation through private sector projects in Latin America and the Caribbean.

The operation is expected to contribute to the following U.N. Sustainable Development Goals (SDGs): Decent Work and Economic Growth (SDG 8), Industry, Innovation, and Infrastructure (SDG 9), Sustainable Cities and Communities (SDG 11), and Partnerships for the Goals (SDG 17).


About DFC

The U.S. International Development Finance Corporation (DFC) is the U.S. Government's development finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.   

About IDB Invest

IDB Invest, a member of the Inter-American Development Bank Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $16.3 billion in assets under management and 394 clients in 25 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.     

About Tembici

The company is the leading micromobility company in Latin America, responsible for more than 250 million bicycle displacements in the main Brazilian capitals, such as Rio de Janeiro, São Paulo, Belo Horizonte, Salvador, Recife, Brasília, Curitiba, Florianópolis and Porto Alegre, as well as Santiago, in Chile, Buenos Aires, in Argentina, and Bogotá, in Colombia. Recognized as one of the most promising and innovative startups in the country, over the last few years the company was responsible for the potential savings of 45 thousand tons of CO2 that would have been released into the atmosphere. In 2022, the company held the first auction of carbon credits for micromobility in the world and became the largest bike sharing company to hold a B Corp certification.    

About Finland-LAC Blended Finance Climate Fund

The Finland-LAC Blended Finance Climate Fund is a trust fund supported by the government of Finland with the objective to catalyze greater private investment in climate change adaptation and mitigation in Latin America and the Caribbean, and with a focus on poor and vulnerable countries and communities, gender equality, diversity, inclusion, and biodiversity.