Velco raises €2 million and sets profitability target

Velco, provider of connected solutions for e-bike brands, has completed a new €2 million fundraising round to accelerate its development, before reaching profitability in the next few quarters.

After establishing a presence in the French e-bike market, Velco expanded in Europe and North America, working with a number of international brands in 2023.

Velco intends to focus on product and service innovation to continue its ascent.

The investors of the Nantes-based start-up have renewed their confidence, following a growth of more than 50% in 2023, despite a difficult environment for the cycle industry.

In 2023, Velco passed the 50,000 mark for equipped bikes, signed its first collaboration in Germany, its first three brands in the United States (Fuell, Quietkat and Vvolt) and has set out a strategy to establish itself as a leader in connected solutions for e-bike brands.

The company will be unveiling its new IoT product at Eurobike in July, adding a range of new features for both cyclists and brands.

Velco’s web and mobile applications are also being improved, with more modern ergonomics and the addition of high value-added features for e-bike brands.

APIs have been added to the Velco software suite, enabling brands to create their own digital ecosystems.

With an innovative and comprehensive range of hardware and software, Velco can now offer its solutions to all e-bike brands.

Among the French brands with which Velco works, some success stories confirm the effectiveness of connectivity in differentiating a brand and enabling it to generate profit.

Gaya, the Parisian brand designed to “simplify the city”, launched in 2021, had bet on connectivity and is an example of this, with the opening up of its capital to its community as part of a participative fundraising to nurture ambitions for development in Europe.

Pierre Regnier, president and co-founder of Velco, said: “Velco is supported by investment funds (GO Capital, Banque des Territoires – Caisse des Dépôts group, Inventures) and family offices to enable a rapid development of our solutions and commercial deployment.

“Velco now has all the cards in its hand to establish its leadership in France, Europe and North America.

“We now have a determined, close-knit team ready to take up the challenge of profitability, an objective we will be able to achieve thanks to the healthy and solid foundations we have built over the last few years and thanks to the support of our investors.”