Swedish electric motorcycle maker Cake has announced the closing of a $ 60 million Series B that the company will use to help set up manufacturing facilities in Europe, North America and Asia, as well as develop its retail sales capabilities.
“We are implementing initiatives to scale the business, structure and lay the foundation for rapid growth,” Stefan Ytterborn, Founder and CEO of Cake, said in a statement.
Cake recently launched the Makka, an electric moped for city driving, which demonstrates a shift in focus for Cake’s product platforms. Its first two vehicles, the Kalk and the Ösa, are designed for more intensive use, off-road driving and utility, so the Makka has helped expand Cake’s user base within the B2C. and B2B, explains Ytterborn.
The new manufacturing facilities on three continents will help Cake be more sustainable and efficient as it aims to ship its vehicles directly to consumers around the world, according to the company. Until recently, bikes were only assembled in Taiwan and shipped to warehouses in the United States, Canada and Europe or directly to customers in Australasia. Each Taiwan shipping container can hold 25 bikes. Now Cake can ship enough components from Taiwan to its European or North American facilities to equal 150 bikes per container, reducing shipping volume by more than 80%, a Cake spokesperson told TechCrunch.
European assembly has been up and running since July, and the company aims for North American assembly to begin in the first half of next year, according to the company.
“In terms of efficiency, we will be able to assemble an order with a delivery time of two weeks instead of ordering eight months in advance, reflecting the anticipated demand: high inventory risk and high cash flow”, said the spokesperson.
With the new funding, Cake will also begin to establish a retail presence, with showrooms in major cities starting this fall, Ytterborn said.
“We knew we were entering a space with increasingly strong tailwinds when we started in 2016, but we couldn’t dream of the rate at which things are happening now, for the good of people, the planet and business, ”he continued.
The round consists of $ 14 million convertible notes and a $ 46 million fundraising round. The latter was run by the Swedish pension fund AMF, according to Cake. A handful of new investors also participated in the round, along with existing stakeholders, Creandum and Headline, two VCs who participated in Cake’s $ 14 million Series A in 2019.
“Cake’s obsession with creating a superior user experience has been embedded in the company’s DNA from day one and is something we can fully identify with,” said Staffan Helgesson, General Partner of Creandum Advisor, in a press release. “We are very happy to continue to support the team over the long term in its ambition to become the leader in its category in the segment of high-end electric two-wheelers. “