On February 4th, 2021, Rad Power Bikes (one of the largest eBike brands in the world) announced a minority investment totaling $150 million dollars. The new round of investment was led by Counterpoint Global (Morgan Stanley), Fidelity Management & Research Company, The Rise Fund, and other accounts advised by T. Rowe Price Associates. Durable Capital Partners LP and Vulcan Capital, who have invested in Rad Power Bikes previously, also contributed to this historic new round of investment.
With the new funding and pledge of support from major experienced investor companies like Morgan Stanley, Rad Power Bikes hopes to rely on their expertise to accelerate its bike development plans. In a statement made by Mike Radenbaugh, founder and CEO of Rad Power Bikes:
“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. 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.”
Continued Growth For One of the World’s Most Recognizable eBike Brands:
Founded in 2015, Rad Power Bikes first made a name for themselves with their flagship electric bike, the RadRover Electric Fat Tire bike. Since their initial release, Rad Power Bikes has grown to be the most popular eBike brand in North America, with 11 unique models to choose from for a wide range of cyclists. It is estimated that more than 200,000 unique riders ride Rad Power Bikes equipment every day, with Rad Power Bikes a major eBike brand in over 30 different countries around the world.
With this new funding, Rad Power Bikes hopes to accelerate its expansion plans and further increase the popularity of Rad Power Bikes around the world. With 325 employees currently working for Rad Power Bikes, one of the major goals now set by the company is to more than double the size of their company team by the end of 2021. Rad Power Bikes has now begun to interview new applicants living in North America, Europe, and Asian territories.
Several comments were made by the investors who have contributed to Rad Power Bikes’ growth. Sam Chainnani, managing director at Morgan Stanley Counterpoint Global, noted:
“Ebikes will play an important role in the future of mobility, extending far beyond the traditional bike market. Our partnership with Rad Power Bikes is exciting as this innovative company is rapidly changing the way the world moves. Mike Radenbaugh and his team have already proven the economics of convenient, energy-efficient mobility solutions.”
These comments were echoed by Henry Ellenbogen, representative of Durable Capital Partners LP, a previous investor in Rad Power Bikes:
“Rad Power Bikes has built an operation with all the earmarks of a company that can be much larger over time. 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.”
Future Outlook For Rad Power Bikes:
With this new investment, Rad Power Bikes hopes to expand its distribution network to cover more than 75% of the eBike customer base in the United States and to enter into several new markets around the world by the end of 2021. Rad Power Bikes also hopes to expand its online service tools, Rad Retail Showrooms, Rad Mobile Service Cans, and to improve the pre and post-purchase customer experience.
While Rad Power Bikes is careful in revealing their overall plans with this new investment, we see it as a positive move that will lead to an even better eBike experience. However, while we can glean a few concrete details about Rad Powers Bikes plans going forward, much of what Rad Power Bikes intends to do with this $150 million dollar remains unknown. eBike riders will be watching with anticipation as to what comes next from Rad Power Bikes.
Conclusion: An Exciting Development for the Entire eBike Industry:
While this funding may have been directed towards Rad Power Bikes specifically, we feel it will definitely lead to greater innovation and development of the eBike industry as a whole. We anticipate that major investment groups will see the advantages and rapid innovation occurring within the eBike industry, and will want to take part in it as well.
We are excited to see what Rad Power Bikes and their investment partners can accomplish with this major, historic investment. We plan on reaching out to Rad Power Bikes for comments on their future plans with this funding now secured and will update our post with any answers we receive. Be sure to visit Electric Bike Report in the future for the latest on Rad Power Bikes and the eBike industry.