The Series B funding will be used to meet the increased demand, shorten delivery times and build a suite of rider service solutions. It also aims to boost its share of the e-bike market in North America, Europe and Japan.
Partly driven by the switch of commuters away from public transport because of the COVID-19 pandemic, the e-bike craze is taking off.
Governments are now investing in cycling infrastructure and the e-bike market is set to surpass $ 46 billion in the next six years, according to reports.
Ties Carlier, co-founder of VanMoof, commented: “E-bike adoption was an inevitable global shift that was already taking place for many years now but COVID-19 put an absolute turbo on it to the point that we’re approaching a critical mass to transform cities for the better.”
VanMoof says it realized a 220% global revenue growth during the worldwide lockdown and sold more bikes in the first four months of 2020 than the previous two years combined.
Stew Campbell, principal at Norwest said: “Taco, Ties and the VanMoof team have not only built an unparalleled brand and best-selling product, but they’re reshaping city mobility all over the world.”
Colin Hanna, principal at Balderton: “As the COVID-19 crisis hit supply chains worldwide, VanMoof’s unique control over design and production was a key advantage that allowed the company to react nimbly and effectively. Moreover, VanMoof’s direct to consumer approach allows the company to build a close relationship to their riders, one that will be strengthened by new products and services in the years to come.”
VanMoof launched the new VanMoof S3 and X3 in April of this year. I reviewed the S3 here and checked out the earlier X2 version here.
Social distancing is the need of the hour and commute post coronavirus can’t be what we were used to. Biking, as an option to commute over short distances, is picking up again with a modern twist. A new report suggests that the global E-bike market size is set to reach a staggering $ 46.04B (€38.9B) by 2026, which suggests that E-bikes could soon be the preferred option for commuters. The same seems to be believed by investors as Amsterdam-based e-bike manufacturer VanMoof has secured €33.7M in Series B funding.
VanMoof raises €33.7M just months after €12.5M investment
In the middle of lockdown in Europe, in May, VanMoof raised €12.5M investment. Now, the company has secured another €33.7M from Norwest Venture Partners, Felix Capital and Balderton Capital. Like before, the company says it will utilise the funds to fuel further global expansion and bolster its manufacturing process. The latest funding round brings the total amount raised by VanMoof to a notable €61.8M.
Cities around the world have realised the importance of cycling as an option to commute after COVID and are investing in its infrastructure too. “E-bike adoption was an inevitable global shift that was already taking place for many years now but COVID-19 put an absolute turbo on it to the point that we’re approaching a critical mass to transform cities for the better,” says Ties Carlier, co-founder VanMoof.
VanMoof says it realised a 220% global revenue growth during worldwide lockdown and sold more bikes in the first four months of 2020 than the previous two years combined.
Fulfilling increased demands and building rider service solutions
VanMoof will use the amount from its latest funding round to meet the increased demand for its e-bikes and shortening delivery time. The company will drive its expansion plans further into key growth markets such as the US and Germany, where new brand stores and pop-up shops will be opened.
Additionally, the company will invest a portion of this amount in creating a suite of rider service solutions, which will be aimed at delivering “best-in-class” support. “Our next frontier is to transform our business by building a full support ecosystem around every rider,” says Carlier. The company’s ecosystem includes a global mobile service network, upgraded app support, updated software with remote diagnostic solutions, and more proactive customer support.
The post-coronavirus world will be a lot different than what we were used to before the pandemic hit. Many things can’t go back to the way they used to be and how we commute will be one of them. Biking will, without a doubt, be one of the best ways to get around and the Dutch e-bike innovator VanMoof has announced securing an investment worth €12.5 million.
E-biking in a post-coronavirus world
Social distancing is now the new norm and in terms of commuting, biking certainly seems to be preferred over conventional commute options. The sales of bikes and e-bikes has skyrocketed post lockdown. Sales of VanMoof’s sleek electric bikes in Britain jumped 184% between early February and the end of April. Furthermore, the sales numbers rose a whopping 138% in the US between Feb and April.
Now, the Dutch e-bike meets tech scale-up has announced securing €12.5 million investment from one of Europe’s leading venture capital firms Balderton Capital and assembly partner SINBON Electronics. These funds will support the company’s international expansion plans as it aims to scale up for keeping up with the increased e-bike demands.
“It’s a unique time to build such a meaningful partnership. Not only do we appreciate this vote of confidence from an investor with deep sector experience, it’s a great sign that investments are becoming greener, shifting away from fossil fuels and towards e-mobility.” says Taco Carlier, VanMoof co-founder.
International expansion plans, coronavirus impact, new e-bikes and more
Even with the current coronavirus scenario, VanMoof has secured notable funding and its e-bike sales are growing steadily. We reached out to the company to learn more about what its plans are and how coronavirus has impacted their business. VanMoof recently commenced its sales operations worldwide. It ships to 19 countries and has 8 brand stores worldwide in New York, San Francisco, Paris, London, Tokyo, Berlin, Amsterdam, and Taipei. A VanMoof spokesperson said that the funds will further support the brand’s international expansion as it scales up to meet increased demand.
Coronavirus has impacted almost every business and the same goes for VanMoof. “We have released our new e-bikes at a time when social distancing is the new reality, and bikes are seen as an increasingly dependable and healthy mobility option. Our sales figures in two markets – UK & US – in a year-on-year comparison (2019 / 2020) illustrate the increased demand in a snapshot. In UK, our sales increased by 184% between Feb and April, while in the US it rose to 138% in the same time period. We’ve also seen a 48% increase in overall online sales since the beginning of February,” VanMoof spokesperson reveals.
Including the latest investment from Balderton & Sinbon funding, VanMoof has received €27.7million in total funding so far. The company has also observed a 48% increase in overall online sales since the beginning of February. With the S3 & X3 e-bikes, VanMoof has taken ownership of the complete supply chain. This enabled it to keep up with the increased consumer demand by building its own hyper-efficient manufacturing and distribution system.
VanMoof currently has no plans to launch any more new models this year after the success of VanMoof S3 & X3.
Cities worldwide investing in biking
As social distancing is crucial for staying safe, countries worldwide are investing heavily in biking to make it more lucrative. Britain is encouraging people to adopt biking as their commute as part of a 250 million pound emergency active travel fund, Reuters reports. Similarly, France plans to invest €20 million to develop and subsidise two-wheel travel, which, like Britain, will include temporary bike lanes.
Amsterdam in the Netherlands and many cities across northern Europe are well-equipped with bike lanes for encouraging the cycling community. However, other countries lack a similar infrastructure but they are now gearing up. British transport minister Grant Shapps announced that the country’s road infrastructure would be changed to accommodate more cyclists. Additionally, e-scooter trials would be prioritised, with the potential for rental vehicles on British roads as early as June.
Today VanMoof, the Dutch e-bike scaleup, has announced a total €12.5 million investment from one of Europe’s leading venture capital firms Balderton Capital and assembly partner SINBON Electronics. The funds will support the brand’s international expansion as it scales up to meet increased demand. The investment follows the launch success of the highly anticipated new electric VanMoof S3 & X3 bikes.
With social distancing the new reality, demand for high quality e-bikes is on the rise. Bikes are seen as an increasingly dependable mobility option compared to public transport. And governments across the globe are responding with new cycle initiatives.For example,Berlin recently implemented a one mile bike lane along a major road, andMilan will introduce a five mile cycle lane to cut car use after the lockdown. This worldwide trend supports VanMoof’s belief in the potential of e-bikes to revolutionize city travel.
“It’s a unique time to build such a meaningful partnership. Not only do we appreciate this vote of confidence from an investor with deep sector experience, it’s a great sign that investments are becoming greener, shifting away from fossil fuels and towards e-mobility.” Taco Carlier, VanMoof co-founder.
VanMoof’s innovation legacy has earned its reputation as one of the most disruptive brands in the international bike industry. The recently launched VanMoof S3 & X3 offer massively improved performance and technology at just 60% the price of their predecessors. The radical entry price is the result of a tipping point in scale and VanMoof’s hyper-efficient manufacturing and distribution system. Thanks to a partnership with SINBON Electronics, VanMoof has been able to take complete ownership of the supply chain. Combined with a direct-to-consumer sales model, this allows VanMoof to produce e-bikes at a more affordable price than ever.
“VanMoof produces a category-leading product in a rapidly growing market that is changing the world for the better. We believe that the quality, community, and experience of VanMoof will make them a household name from Tokyo to Berlin. Taco and Ties have created a very special company that builds on a rich Dutch bicycling tradition, and carries it into the future. Tim Bunting, myself, and the entire team at Balderton are thankful to join the ride”, commented Colin Hanna, Principal at Balderton.
The investment round enables VanMoof to further capitalize on its position as a leader of the e-mobility industry. The success of the VanMoof S3 & X3 have seen sales develop at over twice the speed of any previous launch in the company’s history. VanMoof has entered the scaleup hypergrowth phase in the last two years, quadrupling €10 million 2018 revenue to nearly €40 million in 2019. With sales consistently 20% above target throughout 2020 so far, VanMoof is well on its way to pass the projected annual revenue goal of €100 million.
The funding by Balderton and SINBON comes after a series of record-breakingcrowdfunding rounds and marks the largest investment VanMoof has received to date. It furthers the bike brand’s strategy of partnering with the most established VC investors and, with the support of a global community of riders, all parties are invested in the company’s ultimate goal of getting the next billion on bikes.