E-motorcycle manufacturer Cake raises USD 60 Mn in Series B funding
Cake, a Swedish electric motorcycle manufacturer has reportedly secured USD 60 million in a Series B funding round. The company intends to use the fresh funds to develop manufacturing facilities in Asia, America, and Europe, and to upscale its retail capacity.
Founder and CEO of Cake, Stefan Ytterborn was quoted saying that the company has been implementing strategies to scale the business while also focusing on laying and structuring a base for rapid growth. He further added that the company is gearing up to expand its retail presence by setting up numerous showrooms across major cities.
The funding round consisted of convertible notes of USD 14 million and a USD 46 million funding round, with the latter being led by Swedish pension fund AMF. The event also witnessed participation from existing stakeholders Creandum and Headlines, along with a handful of new investors.
Staffan Helgesson, the General Partner at Creandum Advisor, stated that Cake has always tried to create a superior user experience, which makes it a great fit for the venture capital firm. Creandum is elated to support the e-motorcycle maker in their ambition to become a leading premium electric two-wheeler manufacturing company, he added.
Notably, Cake’s new manufacturing facilities across three continents will fulfill its aim of shipping vehicles direct-to-consumer globally, making the distribution process more efficient and sustainable.
Previously, the bikes had to be assembled in Taiwan and shipped in containers with a 25-unit capacity to warehouses in Europe, Canada, and the U.S., or directly to consumers in Australasia.
With the new manufacturing units, the Swedish EV maker will be able to ship at least 150 bikes per container to Northern American or European facilities and decrease shipping volume by over 80%.
Cake will reportedly be able to assemble an order with at least two weeks delivery time instead of ordering eight months beforehand, denoting a shift from the previous cash flow heavy and high inventory risk structure.
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