VELOTRIC (唯乐高), an overseas e-bike brand located in Shenzhen, China, has completed a CNY 10 million A + round financing recently.
VELOTRIC is one of the electric vehicle brands going overseas in China. It mainly targets the North American market and builds multiple E-bike product lines around the daily travel needs of European and American users for urban commuting, outdoor adventure, and daily entertainment. VELOTRIC greatly improves the performance of E-Bikes by independently designing motors, controllers, and battery management systems, thus greatly improving the user's travel experience.
The VELOTRIC team has offices in Kunshan and Shenzhen in China, and Los Angeles and New Jersey in North America. The founding team members are from LIME, Didi Taxi(滴滴打车), Qingju Bike (青桔单车), Giant (捷安特), TREK, and Specialized. After the new brand VELOTRIC was released as an independent station in May 2022, it completed sales of over 15 million US dollars within 7 months. At the same time, VELOTRIC has established cooperative relationships with 300 offline dealers in North America and is expected to establish cooperative relationships with 700 dealers this year.
According to Statista, the total e-bike market is expected to grow at a compound annual growth rate of nearly 10% from 2022 to 2027, and will reach nearly $80.60 billion by 2030. Although Europe, the United States, and Asia-Pacific are recognized as the main sales positions of e-bikes, with Asia-Pacific accounting for more than 80% of the e-bike market, North America has also set off a cycling boom in recent years and has become the fastest growing region in sales. The North American e-bike market is worth USD 800 million in 2021 and is expected to reach USD 1.62 billion by 2027, with a CAGR (Compound Annual Growth Rate) of 12.51% during the forecast period (2022-2027). E-bikes are moving towards high-end, intelligent, and digital, and are loved by more and more young consumers, which is a major reason for the expansion of the e-bike consumer market year by year.
In the global e-bike market, the VELOTRIC team is targeting the North American market. One of the main reasons is that North America is more suitable for the growth of new brands than Europe, which has a mature bicycle culture and brand. In addition, the electrification penetration rate of less than 10% in North America will be a high-growth market for e-bikes. According to VELOTRIC, in 2023, when channels and products are more abundant, revenue is expected to increase by more than 3 times compared to 2022.
E-bike has attracted a lot of brands to enter the market. Representative companies in China include Yadea (雅迪), GIANT, and DYU (大鱼智行车). Internationally, Specialized in the US, GDANNY in Germany, Italjet in Italy, Triumph in the United Kingdom, and Decathlon in France are also very competitive.
This round of financing of VELOYTRIC was led by Guangdian Capital (光点资本). Together with the previous A round financing invested by Fosun Kinzon Equity (复兴锐正资本) and Redpoint China Ventures (红点中国), the total financing of the VELOYTRIC A series exceeded CNY 100 million.