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.
Image credits: VanMoof