Upway, the French startup that refurbishes and resells electric bikes and recently went public in the US, has brought in fresh funding at a higher valuation than its previous round.
A $30 million Series B round led by Korelya Capital in an e-bike startup signals that Upway is proving to be an impressive enough business case to bolster its capitalization at a time when most valuations are coming back down to earth.
Upway did not share its new valuation, but the new capital brings its total funding to $60 million.
“The rapid penetration of e-bikes represents a pivotal shift towards clean mobility, benefiting both urban and rural areas. We foresee that an improved, circular and accessible ecosystem will drive the growth of this market and magnify its positive impact,” said Paul Degueuse, partner at Korelya Capital. “In such a rapidly growing market and with tens of thousands of refurbished e-bikes already sold, Upway stands out as the emerging global leader in the category.”
The e-bike market is expected to grow at a compound annual growth rate of 15.6% between now and 2030, up to $119.72 billion, according to Fortune Business Insights report. As the adoption of e-bikes increases, a secondary market for used bikes is sure to follow. And while there are countless companies that ship new e-bikes, few are building a name for themselves as a reliable marketplace for used bikes. If it hasn’t already, Upway has an opportunity to corner the market.
For Upway customers, it’s all about a seamless ordering and delivery process and reassurance that their bikes and batteries are high quality and safe. No one wants to just buy a used e-bike on Craigslist or Facebook Marketplace from a random person. Upway bikes go through a rigorous inspection process and come with a one-year warranty. The platform also provides a range of e-bike brands — such as Specialized, Cannondale, Rad Power — and vehicle types — including city/hybrid, road, mountain, cargo and folding — at up to 60% off.
Upway’s investors, such as Sequoia Capital, are no doubt taking note of the startup’s rapid expansion from its 2021 cycle. The company has expanded beyond France and into Germany, the Netherlands, Belgium and the US, and has refurbish and sell over 20,000 e-bikes in these countries. That includes the more than 2,000 e-bikes that have been processed at Upway’s New York warehouse since it launched there in March.
“Combined with Upway’s speed of execution and financial discipline, this has translated into a fast-growing business with very healthy and rapidly improving unit financials, which builds confidence in the long-term trajectory of the business,” said Toussaint Wattinne, CEO and co-founder of Upway, told TechCrunch.
Upway plans to use the new funding to expand further in the U.S. Today, it fulfills orders nationwide from its New York warehouse, but it wants to better serve its customers on the West Coast. Wattinne said Upway plans to open a new warehouse in Los Angeles in 2024.
“The goal is to be able to receive, service and ship from both coasts to provide our customers with fast delivery and spread the workload between our engineers and team,” he said.
