VanMoof, the Dutch e-bike brand, has announced a $128 million minority investment in a funding round led by Hillhouse Investment, an Asia-based private equity firm. The investment brings VanMoof's total raised to $182 million (£132 million) in less than two years, making it the most funded e-bike company in the world, according to the company. VanMoof will use the funds to increase its production capabilities, continue the development of new technology, improve bike specs and reliability and “make its high-quality, high-tech e-bikes more accessible to consumers.”
“We’re reinventing, redesigning and re-engineering every component of the bicycle,” said Taco Carlier, Co-founder of VanMoof in the announcement. “It’s never been done before and will change how a bike is made, sold and serviced forever. It will help us get 10 million people on our bikes in the next five years and our investors share in our vision of a smarter and cleaner mobility future.”
VanMoof has been able to grow its retail and service footprint from eight to 50 locations worldwide over the last year, with sales of their e-bikes more than tripling in 2020. The United States is the fastest growth market for VanMoof, reports the company, with VanMoof brand stores currently in New York, San Francisco and Seattle (as well as Berlin, London, Paris and Tokyo).
“With VanMoof’s unique approach to manufacturing and innovative, consumer-first technology, we are excited about its e-bikes’ potential in engaging millions of riders around the world to adopt active transportation into their commute and to build a healthy lifestyle,” said Haoyu Shen, Partner at Hillhouse Investment, in the announcement. “We are committed to contributing to advancing climate solutions.”
Alongside Hillhouse Investment, the new funding includes commitments from Gillian Tans, former CEO of Booking.com, as well as existing investors Norwest Venture Partners, Felix Capital, Balderton Capital and TriplePoint Capital.
The global e-bike market is forecasted to be valued at around $48 billion by 2028, double the value it was predicted to reach before Covid-19, reports VanMoof.