The growth in sales of e-bikes continues to rocket and so does the investment in companies who believe their bikes will shape the future of personal transport.
The latest maker to attract a serious injection of cash is Rad Power Bikes which has announced a whopping $150 million investment to expand its retail footprint and improve its maintenance and repair services. This follows on from a $25 million deal last February.
The company’s CEO Mike Radenbaugh told The Verge in a recent interview. “This amount of fundraising is normally reserved for — how should I say this — less cash-efficient businesses, like bike-share for example, and this amount of funding really allows us to invest in doubling down on serious infrastructure, both supply chain and after-sales support and services.”
Rad Power Bikes, which is based in Seattle plans on doubling its 325-person workforce by next year with a heavy focus on research and development. The company, which is the largest e-bike maker in the US, offering 11 different models, specialises in tough hybrid and mountain bike products. Its bikes are available not just in the US but in the UK and across Europe.
The investors include Morgan Stanley’s mutual fund, Counterpoint Global; Fidelity Management and Research Company; The Rise Fund, the global impact investing platform managed by TPG; and funds and accounts advised by T. Rowe Price Associates, as well as existing investors like Durable Capital Partners LP and Vulcan Capital.
The market for e-bikes is booming. Cycling Industries Europe (CIE), industry association CONEBI, and user group organization European Cyclists’ Federation (ECF) recently issued a prediction that Europeans are expected to buy an extra 10 million bikes per year by 2030, 47% more than the annual number in 2019.
European VCs invested $165 million into e-bikes in 2019 and 2020, more than the previous four years combined, according to data from PitchBook. Last year Belgian e-bike manufacturer, Cowboy announced that it has secured a €23 million investment from a group of investors including Agnelli, Mini Copper and Adidas.
There are more details on the issues facing the e-bike industry here.