Rad Power Bikes has garnered a reputation for being not just the largest electric bicycle company in North America, but also the most funded.
The company has now announced a huge new funding round today, propping up its capital base by an additional US$154 million. The new fund is a strategic contribution towards its long-term goal, which is to mainstream electric bicycles by making them as affordable as possible.
Part of this latest funding has been earmarked by the firm for the development of production plants in North America and Europe. This financing round is Rad’s second this year, coming on the heels of its previous all-time high investment of US$150 million acquired in February.
The new round is proof that Rad Power Bikes’ existing investors are even more confident about the company’s ability to maximize their cash.
Fidelity Management & Research Company led the round with participation 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.
While product development and expansion are part of the intended applications of the fund, the biggest move planned is the addition of a new production center outside of Asia.
In a bid to diversify its manufacturing and supply chains, the firm plans to invest in North American and European production but declined to state-specific details of the plan.
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