Swytch Technology Ltd announces that it has secured a total of £3.4 million in funding to enable it to increase stock levels for the market-leading ‘Swytch Kit’, a conversion kit that can convert any bike at a fraction of the cost an e-bike transforms into a new e-bike.
With a total customer base of 75,000 and growing by an average of 2,000 customers per month, the new financing allows the company to reduce delivery times for its customers, who are currently waiting an average of a month to receive their order.
Funding was provided through a combination of working capital facilities, export finance and equity investments from a mix of existing and new angel investors and funds.
Existing investors supporting the round included sustainability-focused Green Angel Ventures (GAV), as well as Startup Funding Club (SFC), Angels Den, Southern Angel Investment Club (SAIC) and Calyx Ventures Fund.
The new investors included a wealthy entrepreneur who has a significant stake in a number of other UK cycling companies. The funding round was led by the company’s management advisor, WH Ireland.
The London-based startup has grown rapidly since its founding in 2017 and expects to reach 100,000 customers by the end of 2024. As a testament to its international success story, Swytch attributes more than 60 percent of its sales to customers outside the UK. with 30,000 customers in North America, 12,000 in Europe and 3,000 in the rest of the world.
The majority of Swytch’s customer base purchased the kit through Swytch’s pre-order model, paid a deposit to secure the order, and then custom-made each kit for an individual’s bike, a process that occurred within three months of the initial purchase is completed .
Swytch claims to already be the best-selling e-bike conversion kit in the UK, outperforming all other e-bike competitors. Data from Mintel shows that 155,000 e-bikes were sold in the UK in 2022. This year, Swytch sold 12,300 conversion kits, which corresponds to around 8 percent of the total e-bike market in terms of volume.
Swytch today announced plans for further expansion into the UK, US and European markets. The new funding will allow the company to offer customers faster delivery times and open new retail partnerships to sell kits from in-store inventory.
Oliver Montague, CEO of Swytch Technology, commented: “The main obstacle to our growth over the last few years has been our inability to meet the incredible demand for our product with a short delivery time.” This new funding solves this problem and will enable us to to offer our customers near-instant delivery in 2024 and significantly expand our existing dealer network.”
By Matthew Neville – Senior Correspondent, Bdaily
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