Rad Power Bikes has announced a minority investment of $150 million.
The investment is from Counterpoint Global (Morgan Stanley), Fidelity Management and Research Company, The Rise Fund, the global impact investing platform managed by TPG, and funds and accounts advised by T. Rowe Price Associates.
Existing investors Durable Capital Partners LP and Vulcan Capital also participated in the round. With this investment, Rad Power Bikes is aiming to expand its worldwide operations and rider community.
“E-bikes will play an important role in the future of mobility, extending far beyond the traditional bike market,” said Sam Chainani, managing director, Morgan Stanley Counterpoint Global. “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.”
Mike Radenbaugh, founder and CEO of Rad Power Bikes, added: “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.
“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.”
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% of US customers by the end of 2021.
To meet the growing demand, Rad Power Bikes grew its employee base to 325 in 2020. With plans to expand its global footprint, the company plans to double the size of its team by the end of 2021, hiring throughout North America, Europe and Asia.
“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.