Raising capital for production expansion of electric bicycles Delfast

Delfast is a young and ambitious company that began its business operations as a unique service for delivering goods during only 1 hour in Kiev city and using Chinese electric bicycles in 2014. The next stage was the production of electric bicycles in China under its own brand in accordance with the acquired experience and developed unique technologies.

Today, the company has more than 7000 pre-orders around the world and is going to start industrial production of electric bikes in Ukraine with a record rates, both in speed and duration of the trip on one charge.

• Production: China
• R&D: Ukraine
• Registration: Delaware, USA

Delfast e-bike - Guinness World Records holder - "Longest distance traveled by e-bike without recharging (367 km in 2017)"

In 2018, the companys turnover amounted to $125,000, in 2019 - $552,000, in 2020 it is expected to be $1,000,000; the forecast for 2021 is $20,000,000.

Raised capital: $815,000 (5 rounds of venture funding: Imperious Group VC, Kickstarter, business angels).

$165,000 raised in 2017 on Kickstarter

Valuation of the company as of October 2020: $ 15,000,000

The Problem

Fuel is up to 30% of the cost of delivering goods for short distances and costs the delivery services from $ 1,700 to $ 2,000 per year for each motorcycle. Private users of motorcycles spend an average of $ 400- $ 1000 annually. Available electric bicycles on the market are mostly for recreation use. They are not designed to travel long distances and do not have the ability to quick charge to replace the delivery by cars or motorcycles fully.

The Solution

The launch of a production line in Ukraine with a capacity of 6,000 bicycles a year and the development of the distribution network in the US and Europe. Electric bikes Delfast bike show a record range of motion, which can be used in world-wide delivery services without additional breaks for charging. Electric bicycles Delfast is also an economical and convenient replacement for cars and motorcycles for private users.

Product line

TOP 3.0

Speed ​​enthusiasts who do not accept compromises and want to get the best there is - the fastest, with maximum power, with maximum efficiency from Delfast.

PRIME 2.0

The upgraded legendary electric bike with the largest power reserve without recharging is best suited for professional users who not only get to work, but also have to travel a lot during the day.

OFFROAD

Unprecedented performance in any terrain, this bike is best suited for wildlife enthusiasts, hunters, off-road enthusiasts and all those who are looking for extra comfort when driving on public roads.

Technological innovations

Delfast electric bikes, developed by a team of professional designers and engineers, offer the latest technology, unlike anything else on the market.

• Power reserve. The patented battery management system, motor controller and other components increase mileage by 30%.
• Power. Integrated intelligent energy recovery technology makes the engine more powerful and regenerates energy when braking.
• Mobile application and personal web account. Allow to stay connected and analyze GPS, speed, telemetry and other data. Smart security system and alarm for extra security.
• Data analysis system. The patented loT module uses our own software and mobile application to optimize the system and increase efficiency.

The market

The electric bicycle market is one of the fastest growing segments of two-wheeled vehicles, and is expected to show double-digit growth by 2025, reaching approximately $ 39 billion.

Geography of sales

The main focus regions are: USA (50%), EU (30%), other countries (20%)

Target Audience of Consumers

• B2B segment - 55% (affiliates and partners - 17%, courier and delivery services - 16%, energy, utilities - 8%, franchising - 9%, police, medicine, army - 6%)
• B2C segment - 45% (own online stores - 22%, wholesale stores - 13%, bicycle resellers (distributors) - 9%, сrowdfunding channel - 1%)

Road map

Unit economy: further sales growth will reduce fixed costs per bike and save money by wholesale delivery of bikes to key sales regions.

Offer to the investor:

Required investment: $3 million in equity under SAFE or debt financing to expand its operations, develop new and improve existing models and expand its current product portfolio.

Areas for investment development:

47% - Working capital to create a product warehouse, reduce production and delivery costs, and reduce waiting times for new customers.
20% - Marketing
18% - Research and development to improve existing and develop three new models + additional model for people with special needs
8% - Expansion of staff
7% - Patents and certificates, including DoT (US) and CE (EU)

We offer to the investor: 20% shares of the parent company Delfast Inc. (Delaware, C-corp)

Detailed information on the project is available on request.

InVenture officially represents Delfast to as investment advisor.