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VanMoof, an Amsterdam-based business, has raised $128 million in a Series C investment round. Electric bikes, which are extremely popular in various countries, are designed and sold by the business. It now aims to iterate at a quicker rate in order to become the world’s premier e-bike brand. Hillhouse Investment, a private equity group located in Asia, is heading the round, which also includes Gillian Tans, the former CEO of Booking.com. Norwest Venture Partners, Felix Capital, Balderton Capital, and TriplePoint Capital are among the current investors who have placed extra money on the table.
In comparison to the company’s Series B, the Series C is a significant step forward. VanMoof raised $40 million in Series B funding last year. When everything is said and done, the firm has raised a total of $182 million. If you’re unfamiliar with VanMoof’s e-bikes, recently evaluated the S3 and X3 versions. On paper, they appear to be the same. The VanMoof X3 has a smaller frame and smaller wheels than the VanMoof X2. VanMoof differs from other e-bike manufacturers in that it strives to manage all aspect of the process, from the supply chain to the consumer experience. VanMoof e-bikes are high-end electric bicycles that are primarily intended for city use. The most recent models cost $2,298 (€2,198) at the moment.
They have an electronic gear shifting mechanism and an electric motor. It has four speeds and does not require manual shifting. All you have to do now is get on your bike and peddle. The S3 and X3 are distinguished by their trademark triangular-shaped futuristic-looking frames, as well as hydraulic brakes, integrated lighting, and other smart features. There’s a motion detector built in, as well as an alarm, a GPS chip, and cellular connectivity.
When you report your bike stolen, the GPS and cellular chips turn on, allowing you to monitor it using the VanMoof app. Apple’s Find My app is now compatible with the company’s bikes. Rather than depending only on off-the-shelf components, the firm collaborates with a limited group of vendors to create bespoke components. This allows them to take out as many middlemen as possible, lowering expenses. It’s also a significant competitive advantage.
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Growing a firm like VanMoof requires a lot of money. In 50 different locations across the world, the business has built retail shops and service centres. While VanMoof began in Europe, the United States is currently the company’s fastest-growing market. The business intends to double down on its existing strategy with today’s financing round. Updated motorcycles with improved styling and additional custom parts are on the way. More shops and service centers are expected to open across the world. You might also expect an increase in internet sales.
In a statement, co-founder and CEO Taco Carlier stated, it will help us reach 10 million people on our bikes in the next five years. VanMoof bikes have been used by 150,000 individuals thus far.
The investment made today should not come as a surprise. The epidemic of the coronavirus has hastened plans to restructure European towns and to favor bicycles over automobiles. The company claims to have almost 200,000 bikes on the road currently, with the goal of getting 10 million people on VanMoof e-bikes in the next five years.