{"id":9140,"date":"2021-10-28T09:00:00","date_gmt":"2021-10-28T13:00:00","guid":{"rendered":"https:\/\/autosector.com\/auto\/?p=9140"},"modified":"2021-10-28T09:00:00","modified_gmt":"2021-10-28T13:00:00","slug":"rad-power-bikes-lands-giant-154m-investment-will-begin-north-american-e-bike-production","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=9140","title":{"rendered":"Rad Power Bikes lands giant $154M investment, will begin North American e-bike production"},"content":{"rendered":"

Rad Power Bikes<\/a> isn\u2019t only the largest electric bicycle company in North America \u2013 it\u2019s also the most funded. Rad announced a massive new funding round today, adding another $154 million to its war chest as the company continues its mission of bringing affordably-priced electric bicycles to the masses.<\/p>\n

Part of that huge funding round has already been earmarked to invest in North American and European production.<\/p>\n

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The new funding round is Rad\u2019s second this year, following on the heels of the previously record-breaking $150 million investment secured in February.<\/a><\/p>\n

Now Rad Power Bikes\u2019 existing investors have decided to double down, effectively throwing more money at the leading electric bicycle company.<\/p>\n

The funding round announced today was led by Fidelity Management & Research Company, 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\u2019s multi-sector global impact investing strategy.<\/p>\n

While Rad announced that the funding will go towards the usual suspects of product development and further fleshing out its services such as RadMobile at-home assembly\/repair service, the most interesting new investment may be adding production outside of Asia.<\/p>\n

\"Radcity<\/figure>\n

The company announced that as part of its efforts to diversify its manufacturing and supply chains, it will be investing in North American and European production.<\/p>\n

I pushed Rad Power Bikes founder and CEO Mike Radenbaugh for more details on exactly what that means, but he explained that he wasn\u2019t able to share full details yet on precisely what components could see production in North America or Europe, or exactly where that production would be handled.<\/p>\n

But it certainly fits with Rad\u2019s strategy of finding creative solutions to solve the extreme supply chain difficulties being experienced throughout the electric bicycle industry.<\/p>\n

Not only has Rad Power Bikes already invested in redundant production in several countries across Asia, but the company has purchased its own supply of shipping containers and even its own shipping vessel to keep its e-bikes flowing into the United States. <\/p>\n

With over 350,000 riders so far, the Seattle-based e-bike company leads North America in sales and ridership. Strategic investments in sustaining and growing that edge have been an important part of keeping e-bikes available and maintaining affordable prices during unprecedented uncertainty in the e-bike industry.<\/p>\n

It\u2019s all part of the Rad\u2019s plan to demonstrate that it\u2019s not just an e-bike company, but an entire transportation solution company, Mike explained to me over the phone. And extreme growth has been central to that plan. \u201cWe\u2019ve grown to over 620 people now, and we even have 100 open roles we\u2019re currently filling. We\u2019ll more than double our size this year alone.\u201d<\/p>\n

\"rad<\/figure>\n

It\u2019s not just manpower that has grown, but also the company\u2019s physical footprint. Rad has led in direct-to-consumer sales via its website<\/a>, but has steadily invested in growing its retail space too. Mike explained that between its RadMobile service<\/a> and physical retail stores, Rad Power Bikes would be tripling its physical footprint by the end of 2022.<\/p>\n

All of that investment in growing its manpower and retail presence hasn\u2019t slowed innovation at Rad, with the company launching three new models of e-bikes during the COVID19 pandemic alone. <\/p>\n

The $999 RadMission<\/a> electric bike became an instant success when it was launched last summer. Rad then followed up with two more premium e-bike launches<\/a> this summer with the $1,999 RadRover 6 Plus<\/a> and the $1,799 RadCity 5 Plus.<\/a><\/p>\n

And that pace of innovation looks set to continue. \u201cWe\u2019re not going to slow down on product development,\u201d Mike explained. \u201cWe\u2019re working on a very substantial multi-year product road map. Don\u2019t think we\u2019re going to slow down product innovation \u2013 nothing could be further from the truth.\u201d <\/p>\n

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