Velco, provider of connected solutions for e-bike brands, has completed a new €2 million fundraising round to accelerate its development, before reaching profitability in the next few quarters.
After establishing a strong presence on the French e-bike market, Velco went on to conquer Europe and North America, winning over a number of international brands in 2023. Velco intends to focus on product and service innovation to continue its ascent.
The investors of the Nantes-based start-up have renewed their confidence, following a growth of more than 50% in 2023, despite a difficult environment for the cycle industry.
Despite a cycle industry in crisis, with stock problems paralysing many players, connectivity has established itself as an essential innovation for the years to come. In 2023, Velco has passed the 50,000-bike equiped, signed its first collaboration in Germany (soon to be unveiled), its first 3 brands in the United States (FUELL, Quietkat and Vvolt) and has set out a clear strategy to establish itself as the leader in connected solutions for e-bike brands.
“EXPAND OUR OFFERING TO ATTRACT MAJOR BICYCLE BRANDS”
The essence of Velco is its ability to innovate and push the boundaries of connectivity. The company will be unveiling its new IoT product at Eurobike in July, adding a range of new features for both cyclists and brands. Velco’s web and mobile applications are also being improved, with more modern ergonomics and the addition of high value-added features for e-bike brands. APIs have been added to the Velco software suite, enabling brands to create their own digital ecosystems.
With an innovative and comprehensive range of hardware and software, Velco can now offer its solutions to all e-bike brands, from promising new players to the big names in the world of cycling.
CONNECTIVITY, A KEY SUCCESS FACTOR FOR THE BRANDS SUPPORTED BY VELCO
Among the French brands with which Velco works, some real success stories confirm the effectiveness of connectivity in differentiating a brand and enabling it to generate profit.
Gaya, the Parisian brand designed to “simplify the city”, launched in 2021, had bet on connectivity and is the perfect example of this, with the opening up of its capital to its community as part of a participative fund-raising to nurture major ambitions for development in Europe.
RENEWED SUPPORT FROM ITS INVESTORS TO ACHIEVE THE NEXT STEP
The Velco team is well supported in achieving profitability
Velco is supported by investment funds (GO Capital, Banque des Territoires – Caisse des Dépôts group, Inventures) and family offices to enable a rapid development of our solutions and commercial deployment. Velco now has all the cards in its hand to establish its leadership in France, Europe and North America. We now have a determined, close-knit team ready to take up the challenge of profitability, an objective we will be able to achieve thanks to the healthy and solid foundations we have built over the last few years and thanks to the support of our investors.»
Pierre Regnier, President and Co-founder of Velco
Support from Banque des Territoires (Caisse des Dépôts Group)
“We have supported Velco at every key stage of its development, in 2022 to continue to support R&D investment and commercial development and again in 2023 to enable the company to deploy the business plan and achieve profitability while maintaining significant growth (> 50% per year).”
Philippe Jusserand, Regional Director of Banque des Territoires (Caisse des Dépôts Group)
Support from Inventures
“Inventures is delighted to be able to support Velco in its mission to provide connectivity solutions for electric bike manufacturers and fleet managers. Since our first investment in 2021, Velco has demonstrated sustainable growth and real impact in the mobility sector. By reinvesting in 2023, Inventures is once again demonstrating its confidence in the Velco team, which can already rely on:Sarah Kawa, Principal at Inventures. Created in 2011 and based in Brussels, Inventures supports high-impact technology start-ups (according to the criteria of the Sustainable Development Goals defined by the UN) implementing sustainable and financially profitable innovations.
-An innovative product offering based on a unique technological approach
-A solid portfolio of international customers
-A robust business model with significant embedded (recurring) sales over the next few years (hardware+SaaS)
-A booming electric bike market”.
Support from GO Capital
“We have been involved in VELCO’s capital since 2018 and have supported the company’s successive capital raisings with the aim of making VELCO the leader in connected mobility solutions, offering a unique technological solution based on hardware and a MaaS platform. The new round of financing will enable the management team to accelerate the company’s deployment in France and internationally, particularly with electrically assisted bicycle OEMs. VELCO will thus become the key player in the sector, with access to large volumes of technical and usage data, which is strategic for brands and operators”.
Hervé Bachelot Lallier, Partner at GO CAPITAL, an independent management company, brings together the best ingredients to boost the regional economic fabric and support ambitious technology companies.