SEATTLE (BRAIN) — Rad Power Bikes announced Thursday it received a minority investment of $150 million from several companies.
The investors are Morgan Stanley Counterpoint Global; Fidelity Management & Research Company; The Rise Fund, the global impact investing platform managed by TPG; and funds and accounts advised by T. Rowe Price Associates Inc.
Existing investors Durable Capital Partners LP and Vulcan Capital also participated in this investment round. Rad Power Bikes said the investment reflects a historic commitment to the company's vision of a world where transportation is energy efficient, enjoyable, and accessible to all.
Rad Power Bikes said it will use the funding to extend its market leadership, drive innovation, and scale retail and service offerings.
"E-bikes will play an important role in the future of mobility, extending far beyond the traditional bike market," said Sam Chainani, managing director of Morgan Stanley Counterpoint Global. "Our partnership with Rad Power Bikes is exciting as this innovative company is rapidly changing the way the world moves. (CEO) Mike Radenbaugh and his team have already proven the economics of convenient, energy-efficient mobility solutions."
Rad Power Bikes has played a role in expanding the e-bike market with its direct-to-consumer models. Since launching its flagship RadRover Electric Fat Tire Bike in 2015, it now offers 11 models for everything from commuting to adventuring to hauling gear.
"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," Radenbaugh said. "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."
To meet demand, Rad Power Bikes expanded its workforce to 325 employees 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 of 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."
