Rad Energy Bikes simply introduced a $150 million funding to broaden its retail footprint and enhance its upkeep and restore companies. It’s one of many largest investments in an e-bike firm to this point and displays the rising demand for electric-powered transportation.
Buyers on this spherical embody Morgan Stanley’s mutual fund, Counterpoint World; Constancy Administration and Analysis Firm; The Rise Fund, the worldwide affect investing platform managed by TPG; and funds and accounts suggested by T. Rowe Worth Associates, in addition to current buyers like Sturdy Capital Companions LP and Vulcan Capital.
“I feel total it’s a extremely thrilling second for the direct-to-consumer e-bike area and for e-bikes simply normally,” Rad Energy Bikes CEO Mike Radenbaugh instructed The Verge in a current interview. “This quantity of fundraising is often reserved for — how ought to I say this — much less cash-efficient companies, like bike-share for instance, and this quantity of funding actually permits us to put money into doubling down on critical infrastructure, each provide chain and after-sales help and companies.”
Rad Energy Bikes plans on doubling its 325-person workforce by subsequent yr, Radenbaugh stated, with a heavy give attention to analysis and improvement. It’s going to additionally enable the corporate to speed up the growth of its retail and repair community, which is already slated to cowl 75 % of US prospects by the top of 2021.
Rad Energy Bikes is the most important e-bike maker within the US, providing 11 totally different fashions, from the fat-tire Rad Rover to the brand new, slimmer RadMission. Radenbaugh based the corporate in 2015, after a number of years of promoting his custom-made e-bikes to prospects on the West Coast.
Enterprise capital companies have been pouring cash into electrical bike and scooter corporations over the previous few years. However whereas investor curiosity in shared scooter corporations specifically seems to have cooled off in current months, e-bike makers proceed to draw numerous consideration, particularly as gross sales numbers spiked through the pandemic.
Bikes, each conventional and electrified, have been enormously popular over the past 12 months. A staggering $4.1 billion price of bikes (excluding e-bikes) have been bought within the US between January and October 2020, a 62-percent improve over the identical interval in 2019, in response to the NPD Group, which tracks retail developments. E-bikes confirmed much more momentum, with $490.8 million in US gross sales for a 144 % improve yr over yr.
Consulting agency Deloitte estimated in a report last year that the variety of e-bikes in circulation worldwide ought to attain 300 million by 2023 — a 50-percent improve over 2019’s 200 million.
Buyers see a transparent alternative in persevering with to gas that progress. Rad Energy Bikes closed on a $25 million deal final February, whereas Dutch e-bike brand VanMoof landed $40 million in September. European VCs poured $165 million into e-bikes in 2019 and 2020, greater than the earlier 4 years mixed, in response to information from PitchBook.
Radenbaugh hinted the added capital will assist develop Rad Energy Bikes past the world of two-wheeled transportation. “We’ve received our sights set on one thing a lot greater than an e-bike model and that’s what these buyers noticed as they began to dig deeper into Rad,” he stated.