SAN FRANCISCO: Velotric, a leading innovator in the electric bike market, announced today that it has successfully raised a $7.4 million USD Series A round, bringing the total raised to $12 million USD in its first year. Funding has come from Redpoint China Ventures, Fosun RZ Capital, Uphonest Capital, and Lime Cofounders Brad Bao and Toby Sun. The money will be used to expand the company’s footprint in the United States, a unique move in the e-bike industry, which has traditionally focused on the European market.
Velotric has seen significant growth in recent months having brought in $15 million USD in revenue and selling over 10,000 bikes from May through December 2022. Retail partners who stock the brand’s premium e-bikes have also skyrocketed from 21 in November 2022, to 144 in February 2023, with the brand on a trajectory of being sold in 600+ stores in 2023.
“We’re happy to announce our Series A funding round and are grateful for the support of Fosun RZ Capital and Redpoint China Ventures,” said Adam Zhang, Co-Founder of Velotric. “This investment will allow us to continue our mission of providing premium-quality, affordable e-bikes that make it easier for people to get around. The funds will allow us to expand our market in the United States and facilitate adventures for more people.”
Velotric’s competitive advantage comes primarily from its engineering and supply chain expertise. The team is composed of experienced product designers and engineers from brands such as Specialized, Cannondale, Decathlon and more. Creating a proprietary drive system from the ground up with custom components such as the Velotric motor, battery management system (BMS) and booster algorithm has resulted in e-bikes which have more torque, range, and power efficiency. Additionally, the team’s experience in mass production of millions of rideshare vehicles such as e-bikes and e-scooters means that it is well positioned to deliver on the mission of creating premium e-bikes at an accessible price.
In 2022, Velotric launched two popular e-bikes: Discover 1 and Nomad 1. Discover 1 is the brand’s all-rounder offering, an urban commuter e-bike, while the Nomad 1 is the brand’s first adventure-style, fat-tire model, designed for all-weather, all-terrain use. Both bikes boast a 50% longer range than similar models in the market. This year, Velotric plans to launch a new range of e-bikes which will feature the brand’s newest drive system and a range of customization options for riders.
Safety and reliability are top priority, and the company goes above and beyond industry standards, stress-testing their bike frames 20% more than the ISO requirement for extra strength and durability. All bikes are UL 2271 recognized for battery safety and longevity, and while currently the Discover 1 Step-Thru model is UL 2849 certified, the rest of the models have their certifications underway.
“At Redpoint China Ventures, we are always looking for innovative companies that have the potential to disrupt their industry and make a meaningful impact on society. Velotric not only impressed us with their rapid growth and impressive technology, but their commitment to making premium quality e-bikes accessible to everyone is truly remarkable. We’re thrilled to be a part of this exciting journey and can’t wait to see what the future holds for Velotric,” said Grace Ping, Partner at Redpoint China Ventures.
“Fosun RZ Capital was impressed by Velotric’s super fast growth and we are looking forward to being a part of this journey going forward,” said Fei Ruan, Investment Senior Director at Fosun RZ Capital. “Velotric’s commitment to providing high-quality, affordable e-bikes is truly unique in the market. Their focus on safety and reliability is unparalleled, and we are confident that this investment will help Velotric achieve their goals and continue to make a positive impact on the world.”
As e-bikes continue to gain popularity and play an increasingly important role in the transportation landscape, Velotric is well positioned to take advantage of current market conditions.
For more information on Velotric and their e-bikes, please visit velotricbike.com