UBCO Bikes are rolling ahead with a fourth capital raise with Snowball
- Written by Snowball Effect
- Published on
We're fortunate to partner with high-growth New Zealand businesses through our work as they raise capital to accelerate their expansion. UBCO Bikes is one such Kiwi company that we've worked with several times and have excitedly watched as they go from strength to strength.
Their current investment raise, their fourth with Snowball Effect, will help UBCO continue building on their solid global electric vehicle presence and increasing production to meet escalating demand.
Founded in 2015 and launched in 2017, Tauranga based UBCO Bikes' goal was and still is to 'accelerate the global transition to electric mobility by designing the world's toughest electric utility vehicles that are effortless, safe, intelligent, and affordable'.
UBCO's CEO and Managing Director, Timothy Allan, says the electric vehicle market has changed dramatically over the last few years. "We're expecting the electric vehicle market to grow tenfold in the next 10 years... Climate change means governments worldwide are using regulation and subsidies to encourage people to abandon carbon fuels. Urbanisation is driving high-density cities to take measures to be more livable. The digitisation of everything changes people's work and play, with an expectation for intelligent and sustainable options. All three change waves are massively accelerating the shift to electric power."
Allan says UBCO's customer base ranges from farmers to hunters to commuters and tourists. Companies are also getting on board with business use cases across various industries, including food delivery, freight, agriculture, and defence.
Funds raised through UBCO's capital raise with Snowball Effect will help the utility electric vehicle company maintain its significant lead on competitors. "We need [additional] capital to expand our sales and customer success capability to accelerate closure and de-ployment of large fleet deals. We also want to shorten production lead times and increase production frequency and volumes," Allan says.
"We're working with Snowball again based on the success of previous raises," Allan shares. "The team at Snowball Effect are great to deal with. They provide a complete capital raising package and access to a wide investor audience, so it's a quick and efficient way to raise funds."
Snowball Effect's CEO, Simeon Burnett, says he is delighted to be working with the team at UBCO again. "UBCO are leaders within their sector of the electric vehicle market. It's been great to support them since their angel round in 2015 and observe their evolution, plus the development of the wider EV market, which has now become mainstream."
The electric vehicle market is rapidly growing, with the market size valued at USD 30b in 2019. This market growth is forecast to multiply in the double digits in developing economics following early adoption from China.
For New Zealand investors, UBCO Bike's capital raise provides them with an opportunity to back a Kiwi company at the forefront of this change. Allan says UBCO's strong global team, who have significant industry and management experience, puts them in a good place for continued growth. "We have an international supply chain with sales, marketing, and distribution in each key market. We have a strong brand and a growing global following, with a clear revenue pathway. And we've developed an intelligent platform product with plenty of scope for expansion."
Looking ahead, Allan says the team are excited to be achieving their growth potential. "We have ambitious plans in place and a really great global team with a lot of talent, ideas, and drive. A key part of our growth will come from subscription sales, so we're looking forward to gaining traction in this new innovative space that we're carving out."
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