Refurbished E-Bikes Marketplace Upway Secures $30 Million in Series B Funding

Refurbished E-Bikes Marketplace Upway Secures $30 Million in Series B Funding

French startup Upway, specializing in refurbishing and reselling electric bikes, has recently expanded into the U.S. market and secured a significant $30 million Series B funding round. This investment, led by Korelya Capital, elevates Upway's valuation and bolsters its market position during a period of recalibrated valuations in the tech sector.

Transaction Snapshot:

  • Deal Value: $30 million
  • Deal Type: Series B
  • Investors: Korelya Capital led the round, with participation from Sequoia Capital and others.
  • Founders: Toussaint Wattinne (CEO and co-founder).

Upway, having launched in the U.S., attracted this investment based on a robust business model in the electric bike (e-bike) sector. This funding increases Upway's total capital to $60 million, though the company has not disclosed its current valuation. The investment signifies confidence in Upway's growth potential, especially in a tightening economic climate.

Paul Degueuse, a partner at Korelya Capital, highlighted the significance of e-bikes in promoting clean mobility and the unique market position Upway holds. He praised Upway's role in leading a growing category in the e-bike market, which is expected to reach $119.72 billion by 2030, growing at a compound annual growth rate of 15.6%.

Upway differentiates itself by offering a reliable secondary market for used e-bikes, providing a safe and quality-assured alternative to platforms like Craigslist or Facebook Marketplace. Their rigorous inspection process and one-year warranty on refurbished e-bikes have been pivotal in building customer trust. Upway offers a variety of e-bike brands and types at discounted rates, catering to a diverse customer base.

The company has seen rapid growth since its seed funding in 2021, expanding across France, Germany, the Netherlands, Belgium, and the U.S. Upway has sold over 20,000 refurbished e-bikes, including a significant number through its New York warehouse.

Toussaint Wattinne, CEO and co-founder of Upway, emphasized the company's financial discipline and robust unit economics as key factors in its success. The new funding will aid Upway in further U.S. expansion, with plans to open a warehouse in Los Angeles in 2024 to better serve West Coast customers and distribute workloads more efficiently across the nation.

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