VanMoof, an Amsterdam-based startup, has raised $128 million in a Series C round of funding. VanMoof designs and sells electric bicycles that are very popular in certain markets. The company is now striving to be the world's most popular e-bike manufacturer by innovating faster.
Asia-based private equity firm Hillhouse Investment will lead the round. Gillian Tans (ex-CEO of Booking.com) is also involved. Existing investors, including Norwest Venture Partners and Felix Capital, Balderton Capital, TriplePoint Capital, Balderton Capital, TriplePoint Capital and Balderton Capital, also contributed additional money.
The company's Series B was a far cry from today's Series C. VanMoof secured a $40 million Series A last year. The startup has raised $182million in total, when you add it all together.
TechCrunch has reviewed the latest S3 and X3 VanMoofs ebikes. They look identical on paper. VanMoof X3 has a smaller frame with smaller wheels.
VanMoof is different than other e-bike manufacturers in that it tries to control every aspect of the supply chain and customer experience. VanMoof ebikes are premium electric bikes that are designed to be used in cities. Current models cost $2,298 and 2,198 respectively.
These cars have an electric motor and an electronic gear shifting system. You don't have to manually change the gears. It comes with four gears. You just need to get on the bike and pedal.
The S3 and X3 are easily recognized by their futuristic-looking triangular-shaped frames. They also have hydraulic brakes, integrated lighting, and other smart features. The integrated motion detector can be used in conjunction with alarms, GPS chips and cellular connectivity.
You can track your bike using the VanMoof app if you report your bike stolen. Apple's Find My iPhone app now supports the company's bikes.
The company does not rely on pre-made parts. Instead, it works with a few suppliers to make custom components. It can eliminate as many middlemen as possible in order to lower costs. It is also a competitive advantage.
VanMoof is capital-intensive to grow. In 50 cities across the globe, VanMoof has opened service and retail outlets. VanMoof started its business in Europe but the U.S. is the fastest growing market.
The startup will double down on its current strategy with today's funding round. Expect new bikes with more customized parts and refined designs. Expect more service centers and stores around the globe. You can also expect to see more online sales.
In a statement, Taco Carlier, CEO and co-founder of VanMoof, stated that it will allow us to get 10 million people onto our bikes over the next five year. VanMoof bikes are currently used by 150,000 people.
It shouldn't be surprising that today's investment should not come as a surprise. Plans to transform European cities and place bikes ahead of cars have been accelerated by the coronavirus pandemic. TechCrunchs Natasha Lomas, Natasha Lomas, and I compiled a comprehensive overview last year of key policy developments within four major cities: Paris, Barcelona and London. These policy shifts are now in VanMoof's favor.
