VanMoof raises $40m to further capitalize on worldwide e-bike boom
858 days ago
Amsterdam and Palo Alto, September 2020 – LEVA-EU member VanMoof, announced a $40 million investment from Norwest Venture Partners, Felix Capital and Balderton Capital. The Series B financing comes just months after a $13.5 million investment in May and bolsters VanMoof for further global expansion, giving the company a stronger e-bike market share in North America, Europe and Japan. Leading the current wave of e-bike adoption, VanMoof is the fastest-growing e-bike brand worldwide and is on course to redefine city mobility forever. The funding brings VanMoof’s total raised to $73 million and furthers the e-bike brand’s ultimate mission of getting the next billion on bikes.
Global demand for premium quality e-bikes is at an all-time high, with two-wheeled commutes now seen as a more dependable option in the wake of COVID-19. Many governments have made major investments in cycling infrastructure during lockdown, underlining how COVID-19 has accelerated plans to get more urban commuters on bikes. Millions have since been invested to open up the streets to cyclists, creating new bike lanes across the globe from New York to Milan, from Mexico City to Berlin. The latest projections expect the e-bike market to surpass $46 billion in the next six years, with a growth rate now twice that of pre-pandemic predictions.
“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,” Ties Carlier, co-founder VanMoof.
As category leader, VanMoof has been able to capitalize on this momentum. Not only did VanMoof realize a 220% global revenue growth during worldwide lockdown; VanMoof sold more bikes in the first four months of 2020 than the previous two years combined.
“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. We look forward to supporting the VanMoof team as they expand production, boost rider service solutions, and bring their e-bike experience to new markets.” Stew Campbell, Principal at Norwest.
Service as new frontier
The Series B funding will be used to meet the increased demand and shorten delivery times. Most importantly, a significant portion of the funding will go towards building a suite of rider service solutions, making best-in-class support one of VanMoof’s key pillars. “Our next frontier is to transform our business by building a full support ecosystem around every rider,” said co-founder Ties Carlier. This ecosystem includes a global mobile service network, more intuitive app support, smarter software with remote diagnostic solutions, and more proactive customer support.
The funding will also drive VanMoof’s expansion into key growth markets such as the US and Germany, where new brand stores and pop-up shops will extend the number of customer touch points. Following the expansion of brand stores in Brooklyn, San Francisco and Seattle, a series of pop-ups are planned to open across the US in Spring 2021, in cities like Austin, Chicago, D.C., LA and Portland.
“VanMoof is a truly category-defining brand that continues to push the boundaries of service and design. VanMoof stands out not only because they master the hardware and software parts of their e-bikes, designing everything in-house, but also because of their guaranteed quality thanks to ownership over the supply chain in between. We’re excited to join the VanMoof team in their journey to accelerate new transport and commuting behaviours across the world.” Antoine Nussenbaum, co-founder of Felix Capital.
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Series B investment brings VanMoof’s total raised to $73 million, marking next phase of hyper-growth for world’s fastest-growing e-bike brand
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VanMoof reports 220% global revenue growth during worldwide lockdown
Surge in demand turns the US into VanMoof’s third fastest growth market, as Americans rapidly adopt e-bikes in wake of COVID-19
Global e-bike market forecasted to reach $46B+ by 2026, double that of pre-COVID-19 predictions
Funding will be used to increase production, continue product innovation, realize global expansion and implement next-level rider service solutions