Swytch, eBike conversion kit raised 3.8 million in an oversubscribed round.
In less than a month, a goal of £ 750,000 was raised through Wealth Club clients, and oversubscribed, enabling wealthy private investors to participate in the business and recover a 30% tax rebate on their investment. The money will be used to fund their latest product launch, the world’s first pocket-sized eBike battery launch.
The Switch is a universal eBike conversion kit that converts almost any paddle bike into an electric bike with an easy-fit, light weight conversion system. The kit is quickly removable, so users can easily switch between riding their bike as a conventional or as an ebike. The launch of the pocket-sized battery, launching next month is an expansion of their product offerings.
The funds will be used primarily to invest in people and increase team size, as well as to produce their new pocket-sized batteries and to scale the supply chain. Swytch is looking to increase production to keep pace with rapid growth, which is forecast to grow to 100,000 units annually.
Alex Davis, CEO and founder of Wealth Club, said: “Switch has already captured an admirable 5% of the UK eBay market, based on sales of 9,000 units in the UK market in 2020 alone, an incredible feat and something our clients are eager to be a part of. The company has achieved considerable success in a short period of time, and with relatively limited investment to date and it is also profitable which is unusual for EIS supported companies at this stage. Product eco-certification, engineering USP and strong digital and brand marketing have been key factors in the success, and we’re excited to see how well Pocket Kit works with cyclists.
The founders are ambitious and aim to sell the business for less than £ 100 million in five years. Commercially experienced NEDs and advisory board members are helping them along the way, providing innovative eBike technology and making sustainable electric transport more widely affordable. With the launch of the Pocket Size Battery to expand their product offerings we believe the company is well suited to continue the B2C business growing with a fast growing, strong market position.
The company has been profitable since 2021 and between 2018 and 2021, growing at a compounded rate of 172%, significantly surpassing the eBay market as a whole. To date, it has sold over 40,000 units in 45+ countries, primarily in the EU and USA, and generated £ 25 million in revenue – all from a modest initial equity investment of £ 875k in 2018. Click on the BBC’s technology show, and on Channel 5’s The Gadget show.