Belgian e-bike maker Cowboy has secured €5 million in funding and the backing of a key Asian investor, as the startup is aiming for profitability by 2025.
Founded in 2017 and headquartered in Brussels, Cowboy produces electric bikes for "urban riders". The company has won multiple design awards and in 2022 became the first e-bike maker to achieve B-corp status (a certification of high social and environmental standards).
Cowboy announced on Thursday that it has a new strategic Asian investor, Cypress Capital, a Hong Kong-based investment company with strong connections in the bicycle manufacturing hub, Taiwan.
The Belgian e-bike maker has raised €5 million in funding from a recent financing round, mostly from Cypress but also from existing investors, including Index Ventures, Hardware Club, Future Positive Capital, Isomer, and Exor.
The company says that the funding will put it at the forefront of the growing e-bike industry, which is expected to quadruple in value to €150 billion by 2032.
Profit by 2025
Cowboy has also said it is gearing up for "accelerated growth" in 2025, the same year it is aiming to achieve profitability. The company says it has already significantly improved its business performance, including enhanced unit economics and increased margins.
Cowboy has reported significant losses in recent years, partially due to parts shortages and logistical problems that plagued many sectors as a result of the Covid-19 pandemic.
As well as the €5 million funding round, Cowboy will be launching a crowdfunding campaign on Crowdcube on Monday 9 September.
Cowboy has previously raised €8 million from a series of crowdfunding campaigns, where around 8,000 smaller investors have purchased indirect shares in the company.
"Our partnership with Cypress Capital marks a very special point in our growth journey. Their investment not only strengthens our ties with Taiwan, the home of bike manufacturing that will help us achieve our ambitious goals," said Adrien Roose, Co-Founder and CEO of Cowboy.
"Just as the AI era depends on chips and data centres, the greener, more flexible future we envision rests on progress in physical infrastructure. With new investment, unwavering support from our current investors, the power of the crowd, and continuous innovation, Cowboy is well positioned to lead the category," he said.
Caren Huang, portfolio manager at Cypress Capital, added that the investment company is "excited to support Cowboy's mission to become the premium brand in e-mobility".
