Dutch e-bike startup VanMoof has raised $13.5 billion in funding.
VanMoof, which entered the market in 2009, has become one of those businesses that have been boosted amid a general deterioration in the economic situation. The startup managed to attract investments in the amount of 13.5 billion dollars. The main sources of funding were British venture capital investor Balderton Capital, as well as Taiwanese electronics manufacturer SINBON Electronics, which is also one of the suppliers of VanMoof bicycle components.
The proceeds will be used to bring the brand to the international market. This is planned to be done thanks to VanMoof's recently introduced S3 and X3 electric bike models.
The new models are improved and cheaper versions of previous VanMoof solutions. The company managed to reduce the price thanks to full control over the supply chain and the use of a sales model focused on the direct consumer.
In 2019 alone, the startup generated €40 million in revenue, four times more than in 2018. And sales in 2020 already at 20% exceed the forecast figures, which, if the trend continues, will allow reaching the figure of 100 million euros by the end of the year.
The weakening and lifting of quarantine in many cities around the world has led to growing interest buyers to a variety of electric vehicles. This is not only great entertainment, but also a response to modern living conditions. The thing is that the governments of many countries recommend their citizens to refrain from traveling by public transport because of the increased risk of infection and invest in the development of urban infrastructure for bicycles and other similar types of personal transport.
And electric bikes are becoming a necessity for many residents of European cities. Indeed, in conditions when public transport has not yet fully resumed its work, it has become not so easy to overcome long distances to the place of work or study. And ordinary bicycles lose in this to electric solutions.