CYCLE, a full-service mobility solution for delivery services and couriers, has raised €10.3 million in a Series A funding round led by Scania Growth Capital (East Hill Equity). Further contributors include Local Globe, EnBW New Ventures (ENV), Visionaries Club, Third Sphere, Founder Collective, APX (first check investor by Porsche and Axel Springer) and SpeedUp Venture Capital Group, who were already on board as investors.
With this fresh capital, CYCLE plans to continue its growth in Europe, including an expansion into the UK and other regions. Moreover, the company aims to attract new customers from sectors such as mail and parcel logistics. Additionally, CYCLE has plans for an expansion of its fleet.
Founded in 2018, the B2B service is already available in over 40 German cities. In addition to Germany, the startup is present on several markets like Austria, Italy, Poland and the Netherlands. Customers include well-known food delivery services such as Just Eat Takeaway.com and Wolt, as well as leading grocery delivery companies such as Flink and Gorillas/Getir. CYCLE is also building partnerships in the pharmaceutical/medicine delivery and parcel delivery sectors, positioning itself beyond quick commerce.
The successful funding round underlines the investors’ confidence in CYCLE’s potential and its visionary mission to revolutionise last-mile deliveries:
Luis Orsini-Rosenberg, co-founder and CEO of CYCLE, said: “Amidst the challenges of today’s economic climate, the need for sustainable and efficient transport solutions in urban areas is on the rise. However, the majority of all deliveries are still carried out by combustion engine vehicles. Our vision is to revolutionise the last-mile logistics industry by driving the transition towards sustainable electric vehicles. Through flexible subscription plans, we want to make cargo E-Bikes more accessible, while our extensive, pan-European service network ensures uninterrupted fleet performance. We are looking forward to the continued expansion of our leading position in the space, with the new financing round and the strong addition to our shareholder base.”
For the lead investor, Scania Growth Capital, this financing round marks a kind of ‘return to the roots as the Swedish parent company (Scania) already acquired a bicycle manufacturer in 1911, and their logo is based on a three-spoked bicycle crank. The investment in CYCLE reinforces the company’s commitment to innovative and sustainable mobility solutions.
Christian Zeuchner, Founding Partner at East Hill Equity, said: “We are very happy to announce that Scania Growth Capital is leading the €10.3 million Series A funding round of CYCLE. Driving the shift towards a sustainable transport system is similarly relevant and required for the last mile. It is our belief that e-Bikes will play a vital and growing role in this segment and that CYCLE with its strong team and its vehicle-as-a-service offering will grow successfully in this exciting transport segment.”
According to CYCLE, e-Bikes can reduce last-mile delivery emissions by 90 percent, while electric delivery vans only reduce emissions by a third of the current levels. “We estimate that at least half of all deliveries in urban areas could be handled by E-Bikes and larger cargo bikes. This would not only lead to less traffic on congested inner-city streets but also to a significant reduction in environmental pollution”, added Orsini-Rosenberg.
Through a holistic business model based on subscription, repair, and durable components, CYCLE actively promotes a circular economy and sets a new standard for the delivery industry in terms of sustainability. The financial injection received through this funding round will also be invested in the continued development of the company’s own E-Bikes.
Theodor Schulte, EnBW New Ventures: “Electrification of commercial delivery fleets is a vital step towards meeting emission reduction targets. E-Bikes are the optimal choice for last-mile delivery and free up space on congested city streets. We believe the industry can play an important part in shaping how mobility looks in major cities. CYCLE’s comprehensive mobility service allows for rapid and cost-efficient electrification of those fleets. We are thrilled to support such an outstanding team on its journey toward the future of sustainable mobility.“
Founders Luis Orsini-Rosenberg and Nik Seilern both come from the international mobility industry. In 2018, they launched the company (still under the name GetHenry) and initially focused on providing hotels with E-Scooters for their guests. With the onset of the pandemic, they changed their focus and started offering an all-in-one package to delivery services and courier companies, allowing these companies to focus on their core competencies: delivery. CYCLE’s subscription service takes care of everything else.
