VanMoof has just raised an additional $ 128 million in funding, after announcing a $ 40 million investment round in September 2020. This brings Amsterdam-based VanMoof’s total to $ 182 million raised over the past two years. , excluding the crowdfunding rounds in 2018 and 2019, making it “the most funded electric bicycle company in the world”, according to VanMoof.
The company says it currently has nearly 200,000 bikes on the road, with the goal of getting 10 million people on VanMoof e-bikes over the next five years. These aggressive expansion goals require significant capital.
VanMoof’s new funding round was intended to expand production and “reinvent the way hardware and software components are made,” according to a blog post announcing the new investment cycle. Specifically, VanMoof co-founder Taco Carlier recounts The edge in a telephone interview that most of the funds will go to R&D, “have more people on the hardware and software development to improve the quality and reliability of the bike”.
Last September, the company said it was using about a third of its $ 40 million investment cycle to improve after-sales service that had faltered under pressure from the difficult launch of its S3 and X3 e-bikes during pandemic. This money is already used to expand the business of the company dedicated service hubs from 8 to 50 cities around the world by the end of 2021, and develop a “Bike Doctor network” that sends support technicians directly to customer sites when service is required. Today’s investment cycle will see more service centers and branded stores in (a few) additional cities, according to Carlier, while paying for the deployment of the Bike Doctor network in those cities from 2022.
By comparison, RadPower, the largest maker of e-bikes in the United States, raised $ 150 million earlier this year, adding to the $ 25 million raised the year before. Investors are investing money in e-bike manufacturers in hopes of capitalizing on the global e-bike market which is expected to be worth close to $ 50 billion by 2028. In March 2021, e-bikes already accounted for 17% of all bicycle sales in Europe and over 50% of all new bicycle sales in countries like Germany and the Netherlands.
Sales of e-bikes in the United States are also on the rise. In April, sales had risen 139% to $ 681 million year-to-date, compared to the same period in 2020, according to market research firm NPD Group. VanMoof says the United States is its fastest growing market, “the post-pandemic wave of e-bikes showing no signs of slowing down”.