Rad Power Bikes has announced $154 million in funding from existing investors to supercharge its global efforts to get more people out of cars and onto e-bikes.
This round is led by Fidelity Management and Research Company LLC, with investments from funds and accounts advised by T. Rowe Price Associates, Inc., Counterpoint Global (Morgan Stanley), Vulcan Capital, Durable Capital Partners LP, and The Rise Fund, TPG’s multi-sector global impact investing strategy. This funding will be used to boost investments in product and technology innovation, accelerate the company’s omnichannel sales and support channels, and diversify manufacturing and supply chains, including investments in North American and European production.
“I built my first e-bike in my garage 15 years ago,” said Mike Radenbaugh, CEO and founder, Rad Power Bikes. “Since then I’ve been on a mission to get as many people on e-bikes as possible because of the countless ways they improve people’s lives.
“We believe in practical and utilitarian e-bikes for the masses, which has led us to creating entirely new categories of e-bikes, and drives our accessible pricing, inclusive product design, and industry-pioneering direct-to-consumer sales and service. This record-breaking investment from some of the world’s most respected late-stage investors accelerates our efforts to redefine transportation and mobility, offering car-replacement solutions to people from all walks of life that are energy-efficient, enjoyable and accessible.”
Andrew Davis, director of Private Investments at T. Rowe Price, said: “We believe that as an industry leader, Rad Power Bikes has a compelling market opportunity to fulfil the potential of e-bikes as an effective transportation and mobility solution globally.
“In our view, they have the management team, technology strength, and operational expertise to succeed over the long term and to play an important role in addressing the world’s current and future climate challenges.”
With its community of riders growing rapidly, Rad Power Bikes is expanding its physical footprint for those who need service or want to shop in person. This funding will accelerate the expansion of Rad Mobile Service and Rad Retail Stores, tripling the number of physical locations by the end of 2022.
In 2021, the company opened multiple new distribution centres, and by year’s end will have tripled capacity to deliver bikes and accessories to more customers within a week or less of ordering in North America. Rad Power Bikes will use this investment to continue increasing and strengthening its logistics and fulfilment capabilities, including new distribution centres in the US, Canada, UK and Europe.
“Replacing cars requires innovative solutions,” said Radenbaugh. “We obsess over our customers and how our bikes and accessories can best fit into their daily lives and replace car trips. From teens and professionals commuting to school and work, to parents running errands and dropping kids off at school, to retirees discovering the joy of riding again with loved ones, and even our commercial last-mile customers delivering groceries in busy city streets.
“People worldwide are turning to e-bikes over cars, getting exercise and enjoying their commute rather than dreading it — all while feeling great about reducing their emissions.”
This investment brings total financing transactions since the inception of the company to over $329 million. J.P. Morgan acted as sole placement agent on the transaction.