Rad Power Bikes, a Seattle-based electric bicycle company has secured a new US$25 million funding round in a new official statement. The company got its large funding round which was led by Vulcan Capital and Durable Capital Partners LP.
Rad Power Bikes wants to use this new funding to support its venture of expanding into physical retail stores all around the world. It also plans to use the money to facilitate the expansion of its company’s mobile services and delivery offerings.
After being founded in 2007, the early days of retail electric bicycles, the company has expanded to 200 employees and sold over 100,000 electric bicycles in 30 countries. The company’s mode of operation is Direct-to-customers whereby selling mid-ranger electric bicycles to customers via its website.
While also selling its bicycles in brick and mortar stores, most of its sales comes through its direct to customers channels. Which is part of its reputation making. Its ability to raise the $25M will have a much more positive impact on the business as it looks to expand its physical shops worldwide which will definitely equate to more business for the Electric Bicycle company.
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While the price point of the Rad Power Bikes ranges in the $1,299 Up to $1,499, customer reviews shows that they offer high quality bicycles which are good enough and worth every penny. Being powerful and ability to haul big cargo is also part of the important quality their bicycles possess.
As the year 2020 gets deeper, the company had updated its lineup of new year models adding the much needed upgrades and options to make them even more suitable for a much better users experience. And with its new investment funds, its able to prepare its next retail push.
According to the CEO of the company Mike Radenbaugh who is also the founder of the company made it known to Electrek that
I’ve been passionate about achieving a future where e-bikes are king and transportation is energy efficient, enjoyable and accessible for all since I was 15 years old. We found two groups of world class consumer and retail investors who believe in our vision and will help us surprise and delight our customers in new and exciting ways.Mike Radenbaugh
While Rad Power Bikes is still pretty young and trying to scale in the market, its move towards physical stores will palace it right beside already established e-bikes retailers such as Pedego.
But considering its model of operation, the direct-to-consumer sales will most likely be its biggest advantage which will definitely keep helping the company save costs while being able to keep up with other online retailers like Amazon or Walmart.
Even as the competition increases on every level leading to other retailers reducing their costs, Rad Power Bikes is trying to maintain a level quality and ruggedness which make sits brand unique placing it right above most of its competitors.
For now, Rad Power Bikes seems set on expanding its retail footprint. As Rad Power Bike’s PR Coordinator Steffen Stroup explained to Electrek:
We’re currently experimenting with different types of retail locations that will open this year and beyond, including pop-up stores and full brick and mortar locations. While we’re not ready to share details about our full plans, I can tell you that our next location will be in Austin, Texas.
Expanding our retail locations will help us more quickly achieve our vision of a world where transportation is energy-efficient, enjoyable, and accessible to all. It also reflects positively on the health of our business, as these firms invested because of their confidence in our position as the breakaway category leader and our long-term growth plans.Steffen Stroup
Rad Power Bikes is ambitious and wants to take its business to the next level. After all, business is all about risk taking. And from the optimistic point, the company’s approach to expand to a physical store might be a great move that can help the company become a prominent player in the e-bike industry considering its already high quality products which consumers love. But do toy think the company can survive and not blow through its $25M, let’s know what you think about Rad Power Bikes in the comment section below.