TPG has invested $100m in student transportation company Zum through its Rise Fund, valuing the business at $1.7bn, according to a Reuters report.

The transaction marks an increase from Zum’s $1.3bn valuation in 2024 and follows the company reaching breakeven EBITDA, signalling improving financial performance.

Zum operates in a fragmented $50bn student transportation market undergoing structural transformation. The company provides software and services aimed at modernising school transport systems, including electric bus fleets, route optimisation, and real-time tracking tools. It currently serves more than 4,500 schools across 17 US states.

TPG’s investment will support Zum’s expansion into additional markets, as well as the development of its Connected Mobility Experience platform. The company may also pursue acquisitions as part of its growth strategy.

“None of the existing legacy operators have built a modern, fully integrated technology stack … It creates a real right to win,” Steve Ellis, Managing Partner of TPG’s Rise Funds, told Reuters.

As part of the transaction, TPG will take a board seat, reinforcing its active ownership model and strategic involvement in scaling the business.

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