Rad Power Bikes, which lays claim to being North America’s largest e-Bike only brand, has attracted $150 million in investment from institutions such as Counterpoint Global (Morgan Stanley), the Fidelity Management and Research Company and The Rise Fund, among others.
Fitting a trend of private equity investment in some of the world’s largest e-Bike brands, in particular those with consumer direct channels, the Rad Power Bikes is, according to a Morgan Stanley spokesperson a bet on electric bikes “playing an important role in the future of mobility, extending far beyond the traditional bike market,”
Sam Chainani, Managing Director, Morgan Stanley Counterpoint Global said of the deal: “Our partnership with Rad Power Bikes is exciting as this innovative company is rapidly changing the way the world moves. Mike Radenbaugh and his team have already proven the economics of convenient, energy-efficient mobility solutions.”
Rad Power bikes commands a strong presence in the North American e-bike market and is growing a steady foothold in Europe. The business grew its employee base to 325 in 2020, a tally the company plans to double by the end of 2021, hiring throughout North America, Europe and Asia.
“We are thrilled to be working with this group of prestigious investors who are known for successful, long-term investments, and share our vision for the future of mobility,” said Mike Radenbaugh, founder and CEO of Rad Power Bikes. “Demand for our products has outpaced our wildest projections every year and this partnership is helping us accelerate in-house innovation while creating more of what our customers tell us they love. I can’t wait for everyone to see what we will deliver in 2021 and beyond.”
Challenged by after sales service, Rad Power has begun to put in place a network of physical and mobile units to service customers. This includes dedicated pre and post-purchase customer support teams, online self-service tools, Rad Retail Showrooms, Rad Mobile Service Vans and its local service partner network. This investment will allow Rad Power Bikes to accelerate the expansion of its local retail and service network which is already slated to cover 75 percent of U.S. customers by the end of 2021.
Since launching its flagship RadRover Electric Fat Tire Bike in 2015, Rad Power Bikes has quickly grown to offer 11 e-Bike models for commuting, adventuring, hauling gear, or even your cargo via our commercial partnerships. As well as believing itself to be North America’s largest e-bike brand, the firm claims a community of well over 200,000 riders in more than 30 countries and thousands of commercial operators.
“Rad Power Bikes has built an operation with all the earmarks of a company that can be much larger over time,” said Henry Ellenbogen, Durable Capital Partners, LP. “Their commitment to innovation and providing excellent customer service to their riders has resulted in a high referral rate. We recognize the opportunity that the company has and are excited about the company’s prospects.”
J.P. Morgan served as the sole placement agent to Rad Power Bikes on the transaction.