Argo Lands $1.4M from TheVentureCity to Expand Smart Transit Tech

TORONTO, ON – December 29, 2025 – Argo Corporation (TSXV: ARGH), a Canadian company pioneering next-generation urban transit, has secured a significant C$1.4 million investment from the global venture fund TheVentureCity. The funding, representing the first tranche of a non-brokered private placement, is poised to accelerate the company’s expansion as it seeks to revolutionize public transportation in Canada and beyond.

The deal involves the issuance of 3,500,000 common shares to TheVentureCity at a price of $0.40 per share. According to the company, the proceeds are earmarked for working capital and general corporate purposes, directly fueling Argo’s mission to scale its innovative, on-demand transit solutions. This capital injection comes at a pivotal moment for Argo, which has already demonstrated remarkable success in early deployments and recently secured a major municipal contract.

A Partnership Forged in Tech's Crucible

The investment from TheVentureCity is more than just a financial transaction; it represents a powerful strategic alignment rooted in a shared history at one of the world's most influential tech giants. Argo's co-founder and CEO, Praveen Arichandran, and TheVentureCity's founder and CEO, Laura González-Estéfani, are both veterans of Facebook's early growth-stage teams. Arichandran was instrumental in Facebook's international expansion and later led the product team for Internet.org, while González-Estéfani managed growth initiatives across Silicon Valley, Latin America, and Europe.

This shared background in scaling global, product-led technology platforms provides a deep-seated foundation of trust and understanding. TheVentureCity, founded in 2017, explicitly seeks out fast-growing software companies with data-driven founders and a strong potential for massive market impact. The fund's philosophy centers on "product-led growth," backing companies whose core offering is the primary engine for user acquisition and retention. Furthermore, with a stated focus on sectors fundamental to human well-being like Mobility and a commitment to ESG principles, TheVentureCity’s investment serves as a strong validation of Argo's mission and model.

For Argo, this backing from a fund led by a former colleague with intimate knowledge of building disruptive technologies provides not only capital but also invaluable strategic credibility. It signals to the market that those who understand hyper-growth and technological disruption see significant potential in Argo's approach to solving the persistent challenges of urban mobility.

The Vertically Integrated Transit Revolution

At the heart of Argo's appeal is its unique "vertically and publicly integrated city transit system." Unlike competitors that offer standalone software or operate independently of municipal transit authorities, Argo provides a comprehensive, end-to-end solution designed to augment and enhance existing public transportation networks. This model combines three core elements: proprietary Argo X1 electric vehicles, a sophisticated "Smart Routing™" software platform, and full operational management.

This integrated approach allows cities to transition from inefficient, fixed-route bus services to a dynamic, on-demand system. Riders use a mobile app to request a ride from a location near their home to a destination, with the Smart Routing™ algorithm intelligently plotting vehicle paths in real-time to accommodate multiple passengers. The service operates for a standard public transit fare, making it an accessible and equitable alternative to private ride-hailing services.

The efficacy of this model is not just theoretical. In early 2025, Argo launched its system in Bradford West Gwillimbury, Ontario, completely replacing the town's legacy fixed-route bus system. The results were immediate and dramatic: transit ridership in the community doubled. This success provided a powerful proof-of-concept that quickly attracted further municipal interest. Building on that momentum, Argo secured a landmark $10.9 million contract with the City of Brampton, one of Canada's largest and fastest-growing cities, for a 12-month pilot program that launched in the summer of 2025.

Navigating a Crowded and Evolving Market

Argo enters a dynamic but crowded urban mobility landscape. The sector is teeming with innovation, from global ride-hailing giants like Uber and Bolt to a host of startups focused on Mobility-as-a-Service (MaaS), autonomous vehicle technology, and smart city data analytics. However, Argo's strategy carves out a distinct and potentially more sustainable niche.

Instead of competing directly with public transit, Argo partners with it. This "publicly integrated" philosophy addresses a critical need for municipalities struggling with aging infrastructure, driver shortages, budget constraints, and the "first-mile, last-mile" problem that leaves many residents underserved. By providing a flexible, efficient, and electric-powered solution, Argo helps cities increase service coverage and ridership without the massive capital expenditure required for new fixed-route infrastructure.

The company's solution aligns perfectly with several macro-trends shaping the future of cities. Its use of electric vehicles supports municipal sustainability goals. Its demand-responsive nature is a prime example of how AI and real-time data can create more efficient and user-centric services. By making public transit more convenient and accessible, it directly tackles urban congestion and reduces reliance on single-occupancy vehicles, contributing to the broader vision of the smart, connected city.

Fueling a Global Growth Trajectory

Founded in June 2024 and publicly listed on the TSX Venture Exchange, Argo Corporation has been moving at a rapid pace. The company's recent financial reports show a net loss, a common characteristic for growth-stage tech firms heavily investing in research, development, and market expansion. The $1.4 million from TheVentureCity provides essential runway to build on its recent operational victories.

The capital will be critical for scaling operations to meet the demands of the Brampton pilot and for pursuing new municipal contracts across Canada and internationally. The non-brokered private placement structure, with the possibility of further tranches subject to TSX Venture Exchange acceptance, suggests a phased approach to funding that can align with the company's growth milestones. All securities issued in this first closing are subject to a statutory hold period expiring on April 30, 2026, indicating a long-term commitment from its new investor.

With a proven model, a major municipal contract underway, and now the strategic backing of a well-connected global venture fund, Argo Corporation is positioned to move from a promising Canadian startup to a significant player in the global urban mobility market. This investment acts as a high-octane boost, enabling the company to scale its vision of a more efficient, equitable, and sustainable future for public transportation.