01.11.2021 – 17:01
Rad Power Bikes
The funding follows a previous investment of $ 150 million that the company announced in February this year and underscores the confidence investors have in the company’s leadership and the important role e-bikes play in the fight against climate change
Rad Power Bikes(TM), North America’s largest e-bike company, today announced $ 154 million in funding from existing investors. With this, the company wants to intensify its global efforts to get more people away from cars and onto electric bicycles. This round is led by Fidelity Management & Research Company LLC. Investments come from funds and accounts held by T. Rowe Price Associates, Inc., Counterpoint Global (Morgan Stanley), Vulcan Capital, Durable Capital Partners LP and The Rise Fund, TPG’s multisectoral global impact investing strategy, to get managed. These funds will be used to encourage investment in product and technology innovations, accelerate the company’s sales and support channels, and diversify production and supply chains. This also includes investments in production in North America and Europe.
“I built my first e-bike in my garage 15 years ago. Since then, I have wanted to make the e-bike palatable to as many people as possible because of the myriad reasons why the bikes make people’s lives better”, stated Mike Radenbaugh, CEO and Founder of Rad Power Bikes. “We believe in practical and useful e-bikes for the masses, which has led us to create entirely new categories of e-bikes. Our affordable prices, inclusive product design, and industry-leading direct sales and customer service are based on this. This record breaking investment by some of the world’s most respected late-stage investors accelerates our efforts to redefine transportation and mobility and bring energy efficient, enjoyable and accessible vehicle replacement solutions to people in all walks of life. “
“We believe that, as an industry leader, Rad Power Bikes has a compelling market opportunity to unlock the potential of e-bikes as an effective transportation and mobility solution around the world,” said Andrew Davis, director of private investments at T. Rowe Price. “We believe the company has the management team, technology strength and operational experience to be successful over the long term and to play an important role in addressing current and future climate change issues.”
The community of riders is growing rapidly and Rad Power Bikes is expanding its physical presence accordingly for those who need service or want to shop in person. This funding will accelerate the expansion of Rad Mobile’s services and retail stores, and triple the number of physical locations by the end of 2022.
In 2021, the company opened several new distribution centers and by the end of the year capacity is to be tripled so that bicycles and accessories can reach customers in North America within a week of ordering at the latest. Rad Power Bikes will use this investment to further expand and strengthen its logistics and supply capacities. This also includes new distribution centers in the US, Canada, the UK and Europe.
E-bikes are critical to tackling the global climate crisis as gasoline-powered modes of transport are the largest contributor to CO2 emissions in the United States. There are around 250 million cars on the US roads, and 59 percent of all car journeys are five miles or less.1 If every person in the US were to be without their car for only half of their journeys under a mile, the US Environmental Protection Agency, EPA, would save 2 million tons of CO2 per year – that would be 400,000 fewer cars on the road.2 The Rad Power Bikes can travel up to 45 miles or more on a single charge, so drivers can replace much longer journeys with them save even more CO2 emissions. In addition to greatly reducing emissions, e-bikes keep people fit and contribute to mental and physical health. According to the British Medical Journal, studies show that people who cycle regularly have a lower risk of cardiovascular death. Have illnesses or cancer 3 A recent study has shown that e-bike riders in particular have more health benefits through more frequent and longer riding than conventional cyclists
“Replacing cars requires innovative solutions. We are obsessed with the question of how we can be there for our customers and how our bikes and accessories can best be integrated into their everyday lives and replace driving. They are teenagers or professionals. commuting to school and work, parents running errands and taking the kids to school, retirees happy to cycle with their families again, or even our commercial customers delivering groceries on the busy streets of the city , “explained Radenbaugh. “People all over the world prefer to use the e-bike than the car, enjoy the movement and their ride instead of dreading it, and still feel good about it because they reduce their carbon emissions.”
This investment brings total financing transactions to over $ 329 million since the company’s inception. This is the largest financing ever for an e-bike company for direct customers.
JP Morgan acted as the sole agent for the transaction.
Quellen: 1 - National Household Travel Survey2 - Environmental Protection Agency3 - British Medical Journal 4 - Transportation Research Interdisciplinary Perspectives
Information on Rad Power Bikes(TM): Rad Power Bikes is the largest e-bike brand in North America with a community of more than 350,000 riders in more than 30 countries and thousands of business customers. Founded in 2007, the global direct selling company offers a full range of affordable e-bikes and accessories that are reinventing the way people get around and how goods are transported. The global team, which consists of passionate e-bikers, develops products and service solutions that are specially designed for commuters, adventurers, deliverers and children. The company develops all of its products in-house at its headquarters in Seattle, has international offices in Vancouver, British Columbia, Utrecht, the Netherlands, and has teams in Shanghai, China, and Taipei, Taiwan. The company has more than 20 Rad Mobile Service locations and 5 Rad retail stores and is expanding to serve customers in the US, Canada and Europe. Rad Power Bikes was recognized by TIME, Fast Company and INC. recognized as one of the most innovative and influential companies of the year 2021 and is committed to a world in which transport is energy-efficient, pleasant and accessible to all.
Original content from: Rad Power Bikes, transmitted by news aktuell