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July 19, 2023

CYCLE receives $11.3 million in Series A financing round

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CYCLE receives $11.3 million in Series A financing round

CYCLE, the full-service mobility solution for delivery services and couriers, has raised $11.3 million in a Series A funding round led by Scania Growth Capital (East Hill Equity). Further contributors include Local Globe, EnBW New Ventures (ENV), Visionaries Club, Third Sphere, Founder Collective, and SpeedUp Venture Capital Group, who were already on board as investors. With over $11 million, CYCLE plans to continue its growth in Europe, including an expansion into the UK and other regions. Moreover, the company aims to attract new customers from sectors such as mail and parcel logistics. Additionally, CYCLE has plans for an expansion of its fleet.

On the advance in Europe

By the time of the company’s 5th anniversary on the 4th of July, the B2B service is already available in over 40 German cities. In addition to Germany, the start-up is present on the market in Austria, Italy, Poland and the Netherlands. Customers include well-known food delivery services such as Just Eat Takeaway.com and Wolt, as well as leading grocery delivery companies such as Flink and Gorillas/Getir. CYCLE is also building partnerships in the pharmaceutical/medicine delivery and parcel delivery sectors, positioning itself beyond quick commerce.

Diversification for a better environment

To diversify its customer portfolio, CYCLE is launching pilot projects with renowned parcel delivery companies. To these companies, the extensive service network of CYCLE is of great importance as they also seek solutions to reduce emissions on the last mile and further increase the sustainability of their services. E-Bikes can reduce last-mile delivery emissions by 90 percent, while electric delivery vans only reduce emissions by a third of the current levels. “We estimate that at least half of all deliveries in urban areas could be handled by E-Bikes and larger cargo bikes. This would not only lead to less traffic on congested inner-city streets but also to a significant reduction in environmental pollution”, says Luis Orsini-Rosenberg, co-founder and CEO of CYCLE.

CYCLE drives sustainable corporate mobility forward

Another milestone is CYCLE’s partnership with one of Italy’s largest companies on a corporate mobility programme. This cooperation enables companies in Italy to offer sustainable mobility solutions to their employees and thereby reduce the environmental impact of their business activities. CYCLE sees this partnership as an important step in extending its products and services into the corporate sector and making the benefits of sustainable mobility accessible to a wider target group.

New E-Bike in the range: “20FIFTY”

Through a holistic business model based on subscription, repair, and durable components, CYCLE actively promotes a circular economy and sets a new standard for the delivery industry in terms of sustainability. The financial injection received through this funding round will also be invested in the continued development of the company’s own E-Bikes. CYCLE is particularly proud to launch the ’20FIFTY,’ their new E-Bike with a frame made of recycled aluminum. The 20FIFTY, specially designed for deliveries, promises a revolutionary solution for delivery in urban areas. It has a load capacity of up to 200 kg, a 1000-watt-hour battery, and a modular dual-dropout system that allows for the extension of the wheelbase. With its exceptional load capacity, the innovative cargo bike has the potential to replace conventional internal combustion engine vehicles in last mile deliveries.

The successful funding round underlines the investors’ confidence in CYCLE’s potential and its visionary mission to revolutionise last mile deliveries:

Luis Orsini-Rosenberg, co-founder and CEO of CYCLE: “Amidst the challenges of today’s economic climate, the need for sustainable and efficient transport solutions in urban areas is on the rise. However, the majority of all deliveries are still carried out by combustion engine vehicles. Our vision is to revolutionise the last mile logistics industry by driving the transition towards sustainable electric vehicles. Through flexible subscription plans, we want to make cargo E-Bikes more accessible, while our extensive, pan-European service network ensures uninterrupted fleet performance. We are looking forward to the continued expansion of our leading position in the space, with the new financing round and the strong addition to our shareholder base.”

For the lead investor, Scania Growth Capital, this financing round marks a kind of ‘return to the roots’ as the Swedish parent company (Scania) already acquired a bicycle manufacturer in 1911, and their logo is based on a three-spoked bicycle crank. The investment in CYCLE reinforces the company’s commitment to innovative and sustainable mobility solutions.

Quote Christian Zeuchner, Founding Partner at East Hill Equity: “We are very happy to announce that Scania Growth Capital is leading the $11.3m Series A funding round of CYCLE. Driving the shift towards a sustainable transport system is similarly relevant and required for the last-mile. It is our belief that e-Bikes will play a vital and growing role in this segment and that CYCLE with its strong team and its vehicle-as-a-service offering will grow successfully in this exciting transport segment.”

Quote Theodor Schulte, EnBW New Ventures: “Electrification of commercial delivery fleets is a vital step towards meeting emission reduction targets. E-Bikes are the optimal choice for last-mile delivery and free up space on congested city streets. We believe the industry can play an important part in shaping how mobility looks in major cities. CYCLE’s comprehensive mobility service allows for rapid and cost-efficient electrification of those fleets. We are thrilled to support such an outstanding team on its journey toward the future of sustainable mobility.“

Complete service for delivery services and courier companies

Founders Luis Orsini-Rosenberg and Nik Seilern both come from the international mobility industry. In 2018, they launched the company (still under the name GetHenry) and initially focused on providing hotels with E-Scooters for their guests. With the onset of the pandemic, they changed their focus and started offering an all-in-one package to delivery services and courier companies, allowing these companies to focus on their core competencies: delivery. CYCLE’s subscription service takes care of everything else. This includes the production and financing of high-quality E-Bikes, the management of the fleet through specially developed software and regular maintenance by specialised mechanics. CYCLE’s expertise is based on experience with delivery services in over 85 cities, including Rome, Amsterdam, Berlin, and Vienna. Delivery partners can be confident not only that their bikes are ready for use all year long, but also that they are fully supported by CYCLE. This is ensured by a customised fleet management software that provides real-time data to track, optimise and predict the use of their own E-Bike fleet. Additionally, a team of experienced mechanics that provides repair services whenever needed is at the customer’s disposal. At any given time, on average, over 90 per cent of the CYCLE fleet vehicles are available to customers.

About CYCLE

CYCLE was founded by cousins Luis Orsini-Rosenberg and Nikodemus Seilern in 2018. The company pioneered the model of a full-service subscription for light electric vehicles. The goal: to make e-mobility affordable for everyone. During the COVID-19 pandemic, the startup started to focus on last-mile delivery due to the positive environmental impact of electric mobility on commercial transportation. Over the years, CYCLE grew to one of the leading electric vehicle subscription companies in Europe.