Boutique e-motorcycle startup Cake information 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 response to Swedish media reports. Ytterborn declined to touch upon what’s 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 mind but to find a solution in one format or another.” His feedback recommend the corporate filed for cover.

Greatest recognized for making high-design bikes, Cake raised a $14 million Sequence A in 2019. It adopted that with a $60 million Series B round 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 considered one of its mopeds due to a risk that the steering column could break. Only a few weeks later, it recalled its flagship Kalk e-motorcycle after a unit caught fire 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 most recent within the wider world of e-mobility. Superpedestrian went out of enterprise and Bird filed for chapter. Micromobility.com — previously generally known as Helbiz — was delisted from the Nasdaq inventory alternate. Tier and Dott determined to merge so as 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 bankruptcy protection last year. However it was capable of finding a purchaser in electric scooter company Lavoie that has since gotten the model again up and working.