Swedish electric motorcycle/moped maker CAKE has just announced the closing of a $60 million funding round, which will help the company scale its production and bolster retail and service locations for the two-wheeled brand.
According to the company’s press release, the fundraising was done via two convertible notes (financial debt instruments that can be turned into equity stakes in the company, at a later time), totaling $14 million and $46 million each.
The bulk of the financing came from Swedish pension fund AMF, while the rest of the funding came from several investors, led by current CAKE shareholders Creandum and Headline.
“We appreciate the opportunity to invest in one of Sweden’s most interesting companies within the field of electrification at this rather early stage,” said Patricia Hedelius, Portfolio Manager at AMF.
“CAKE’s drive and go-ahead spirit is impressive, as is the ambitious plan to grow the company and offer sustainable transportation. The products can be important in the transition to a more sustainable society, and CAKE’s innovative design and solid custom focus has contributed to a strong market interest.”
The funding will be used to scale CAKE’s production capabilities, which should hopefully let the Swedish brand be more competitive on its pricing.
CAKE is also already in the process of creating local manufacturing facilities in Europe, North America, and Asia, which would not only reduce costs in bringing products to these markets, but also help the company hit its sustainability goals.
The company says that “CAKE Sites” will consist of showrooms, retail space, and servicing, and they will begin popping up in major cities, starting this fall.
“We knew we were entering a space with increasingly strong tailwinds when we got started back in 2016, but we couldn’t dream of the pace in which things are now happening, for the good of people, planet and business,” said Stefan Ytterborn, Founder & CEO of CAKE.
CAKE has been pushing the envelope as not only a sustainable business operation in the motorcycle industry, but also the definition of what is a motorcycle – creating machines that sit somewhere between full-size motorcycles, mopeds, and even electric bicycles.
A marriage between hardcore utilitarian design and Scandinavian thinking, CAKE’s lineup includes the Kalk road and dirt bike lineup, the ultra-versatile Ösa urban bike, and now that Makka anti-scooter.
“Cake’s obsession with creating a superior user experience has been ingrained in the company’s DNA from day one and is something we can fully identify with,” added Staffan Helgesson, General Partner at Creandum.
“We are very happy to continue to support the team for the long term in their ambition to become the category leader in the premium two wheeler electric vehicle segment.”