Swytch Technology Ltd announces it has secured a total of £3.4m funding, to facilitate increasing stock levels for the market-leading ‘Swytch Kit’, a conversion kit that transforms any bike into an e-bike for a fraction of the cost of a new e-bike.
With a total customer base of 75,000 increasing by an average of 2,000 customers per month, the new funding will enable the business to reduce delivery times to its customers, who currently wait an average of one month to receive their order.
The funding was raised from a combination of working capital facilities, export finance, and equity investment from a mixture of existing and new Angel Investors and Funds.
Existing investors who supported the round included the sustainability-focused Green Angel Ventures (GAV), as well as Startup Funding Club (SFC), Angels Den, Southern Angel Investment Club (SAIC) and the Calyx Ventures Fund.
New investors included a High Net Worth who has a significant stake in a number of other cycling-related businesses in the UK. The funding round was led by the Company’s corporate adviser, WH Ireland.
The London based startup has grown rapidly since its formation in 2017, and expects to reach 100,000 customers by the end of 2024. Testament to its international scale trajectory, Swytch, credits more than 60 per cent of its sales to customers outside of 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 have purchased the kit through Swytch’s pre-order model, paying a deposit to secure their order, and then each kit then made to order, specific to an individual’s bike, a process that completes within three months of initial purchase.
Swytch claims to already be the best-selling e-bike conversion kit in the UK, outselling all other e-bike competitors. Data from Mintel shows that 155,000 e-bikes were sold in the UK in 2022, during which year Swytch sold 12,300 conversion kits, therefore accounting for approximately 8 per cent, by volume, of the entire e-bike market.
Swytch has today announced plans to expand further in the UK, US and European markets. The new funding will allow the company to offer shorter delivery times for its customers, as well as opening new retail partnerships to sell kits from stock in-stores.
CEO of Swytch Technology, Oliver Montague commented: “The main barrier to our growth in recent years has been our inability to fulfil the incredible demand for our product, with a quick delivery time. This new funding solves that and will allow us to offer near-instant delivery to customers in 2024, and to significantly grow our existing network of retailers.”
By Matthew Neville – Senior Correspondent, Bdaily
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