April 14, 2024
Boutique e-motorcycle startup Cake files for bankruptcy techcrunch

Electric motorcycle startup Cake filed for bankruptcy on February 1, CEO Stephen Ytterborn has confirmed to TechCrunch.

According to Swedish media reports, the Swedish company was in the middle of a funding round just before the filing, but apparently an investor withdrawal left the company sidelined. Ytterborn declined to comment on what happens next. While it is unclear whether Cake has filed for bankruptcy protection or bankruptcy, Ytterborn told media outlet Dagens Industrie that they had “nothing else to do but find a solution in some form or another.” His comments indicate that the company has applied for protection.

Known for creating high-design bikes, Cake raised a $14 million Series A in 2019. It then raised a $60 million Series B round in 2021 led by Swedish pension fund AMF. The company said at the time that the capital was to fund manufacturing facilities in Europe, North America and Asia, as well as expand its retail capabilities.

However, Cake has struggled recently. In November, it recalled one of its mopeds due to the risk of the steering column breaking. Just a few weeks later, it recalled its flagship Kalk e-motorcycle after a unit caught fire at a South Korean dealership. Ytterborn confirmed to Swedish outlet Brekit last week that the company would not be able to pay salaries to employees.

Keck’s struggles are the latest in the wider world of e-mobility. Superpedestrian went out of business and Bird filed for bankruptcy. Micromobility.com – formerly known as HellBiz – was delisted from the Nasdaq stock exchange. Tier and Dot decided to merge to find a better way forward.

However, perhaps most relevant to CAKE is the case of VanMoof. The Netherlands-based high-end e-bike maker filed for bankruptcy protection last year. But it was able to find a buyer in electric scooter company Lavoie which has since resurrected the brand.

Source: techcrunch.com

Leave a Reply

Your email address will not be published. Required fields are marked *