Boutique e-motorcycle startup Cake recordsdata for chapter

Electrical motorbike startup Cake filed for chapter February 1, CEO Stefan Ytterborn has confirmed to TechCrunch.

The Swedish firm was in the midst of a funding spherical, simply previous to the submitting, however apparently the withdrawal of an investor was what tipped the corporate over the sting, in line with Swedish media reviews. Ytterborn declined to touch upon what is going to occur subsequent. Whereas it’s unclear if Cake filed for chapter safety or insolvency, Ytterborn did inform media outlet Dagens Industri that he had nothing else “in thoughts however to discover a answer in a single format or one other.” His feedback recommend the corporate filed for defense.

Finest identified for making high-design bikes, Cake raised a $14 million Sequence A in 2019. It adopted that with a $60 million Sequence B spherical in 2021 led by Swedish pension fund AMF. The capital was meant to fund manufacturing amenities in Europe, North America and Asia, in addition to scale up its retail capabilities, the corporate stated on the time.

Cake has struggled as of late, although. In November, it issued a recall for certainly one of its mopeds due to a threat that the steering column might break. Only a few weeks later, it recalled its flagship Kalk e-motorcycle after a unit caught hearth in a South Korean dealership. Ytterborn confirmed final week to Swedish outlet Breakit that the corporate wasn’t going to have the ability to make wage funds to staff.

Cake’s struggles are simply the newest within the wider world of e-mobility. Superpedestrian went out of enterprise and Chicken filed for chapter. — previously often known as Helbiz — was delisted from the Nasdaq inventory change. Tier and Dott determined to merge to be able to discover a higher path ahead.

Maybe most related to Cake, although, is the case of Vanmoof. The high-end e-bike maker out of the Netherlands filed for chapter safety final 12 months. But it surely was capable of finding a purchaser in electrical scooter firm Lavoie that has since gotten the model again up and working.

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