- E-bike brand Rad Power Bikes recently announced a minority investment of $150 million. These are the details.
E-bike brand Rad Power Bikes recently announced a minority investment of $150 million from Counterpoint Global (Morgan Stanley), Fidelity Management & Research Company, The Rise Fund, TPG, and funds and accounts advised by T. Rowe Price Associates. And existing investors Durable Capital Partners LP and Vulcan Capital also participated in the round.
This investment reflects a historic commitment to Rad Power Bikes’ vision of a world where transportation is energy-efficient, enjoyable, and accessible to all. And Rad Power Bikes will use this new funding to extend its market leadership, drive innovation, and scale retail and service offerings.
The global micro-mobility market has grown steadily for years as people are looking for accessible energy-efficient ways to get around. And electric-powered bikes have become an increasingly popular mobility option with sales growing eightfold since 2014. And Rad Power Bikes has been a driving force behind the ebike market expansion with its high-quality innovative direct-to-consumer ebikes.
The company is already dominating the North American ebike market and is growing rapidly in Europe. And with this investment, Rad Power Bikes is poised to rapidly expand its worldwide operations and rider community.
Rad Power Bikes is elevating expectations of direct-to-consumer brands by offering an array of service and support options for customers whether it’s their first or 10,000th mile. And this includes dedicated pre- and post-purchase customer support teams, online self-service tools, Rad Retail Showrooms, Rad Mobile Service Vans and its local service partner network. This investment will enable Rad Power Bikes to accelerate the expansion of its local retail and service network which is already slated to cover 75% of U.S. customers by the end of 2021.
Since launching the flagship RadRover Electric Fat Tire Bike in 2015, Rad Power Bikes has quickly grown into the largest ebike brand in North America. And currently offering 11 ebike models for everything from commuting to adventuring, and hauling your gear, your kids, or even your dinner via our commercial partnerships, Rad Power Bikes has a community of well over 200,000 riders in more than 30 countries and thousands of commercial operators.
In order to meet the ever-growing demand, Rad Power Bikes grew its employee base to 325 in 2020. And with aggressive plans to expand its global footprint, the company plans to double the size of its team by the end of 2021, hiring throughout North America, Europe and Asia.
“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.”
— Sam Chainani, Managing Director, Morgan Stanley Counterpoint Global
“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.”
— Mike Radenbaugh, founder and CEO of 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.”
— Henry Ellenbogen, Durable Capital Partners, LP