E-bike company Rad Power Bikes has raised $150 million to drive innovation and scale its retail and service offerings.
Counterpoint Global (Morgan Stanley), Fidelity Management & Research Company, the Rise Fund and funds and accounts advised by T. Rowe Price Associates participated in the round, as did existing investors Durable Capital Partners LP and Vulcan Capital.
According to the NPD Group, electric-powered bike sales have grown eightfold since 2014 as people look for accessible, energy-efficient ways to get around. The COVID-19 pandemic has exacerbated this trend as even more consumers seek alternate forms of transportation.
Seattle-based Rad Power Bikes sells its e-bikes direct-to-consumer and has a primary presence in North America. The company will use the new funds to expands operations in Europe and around the globe.
“We are thrilled to be working with this group of prestigious investors who are known for successful, long-term investments, and share our vision for the future of mobility,” says Mike Radenbaugh, founder and CEO of Rad Power Bikes.
"Demand for our products has outpaced our wildest projections every year and this partnership is helping us accelerate in-house innovation while creating more of what our customers tell us they love. I can’t wait for everyone to see what we will deliver in 2021 and beyond.”
In addition to selling e-bikes, Rad Power Bikes also provides services including customer support teams, online self-service tools, dedicated showrooms and its local service partner network.
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It says the new investment will help the company accelerate the expansion of its local retail and service network, which is slated to cover 75% of U.S. customers by the end of 2021.
Founded in 2007, Rad Power Bikes claims it is the largest e-bike brand in the United States. In 2020, it grew its employee base to 325 to meet growing consumer demand, and this year the company plans to double the size of its team.
It currently offers 11 e-bike models and counts more than 200,000 riders in more than 30 countries and thousands of commercial operators as part of its network.
"Rad Power Bikes has built an operation with all the earmarks of a company that can be much larger over time,” says Henry Ellenbogen, Durable Capital Partners LP.
"Their commitment to innovation and providing excellent customer service to their riders has resulted in a high referral rate. We recognize the opportunity that the company has and are excited about the company's prospects."
Rad Power Bikes joins other e-bike services that have attracted investment amid the pandemic including HumanForest, which crowdfunded £1.3 million in December, as well as Germany-based DANCE, which raised a €15 million Series A round in October.