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Production of electric bicycles Delfast

Raising capital to the project of Delfast electric bikes production in Ukraine
  • Sector: Сельское хозяйство
  • Stage: Стартап (Startup / Seed)
  • Type of investment: Участие в капитале
  • 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 5500 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.

    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.

    Delfast in figures

    • Raised funds in previous rounds: $ 815 K (5 rounds of venture financing: Imperious Group VC, Kickstarter, angels)
    • Valuation of the company, September 2018: $ 26 million
    • $ 165 thousand collected in 2017 at Kickstarter
    • $ 155 thousand brought sales of electric bicycles through the site in just 8 months of 2018
    • 5500+ preliminary applications from buyers. The main customers - courier, postal companies and individuals (USA, EU countries and other countries)
    • Own technical solutions and developments (at the stage of patenting)
    • High level of customer loyalty and wide attention of the media all over the world
    • 367 km on one charge without pedals – it’s a world Guinness record, the previous record - 80 km.

     Product line

     

    Prime

    Top

    Lite

    Batteries

    48V 64Ah 13S12Р Boston Swing (USA) + bluetooth smart BMS

    72V 48Ah 20S9Р Boston Swing (USA) + bluetooth smart BMS

    36V 28Ah 10s10p Panasonic PF + smart BMS Mr.Dream

    Charger

    Lipo 54, 6V 12A + waterproof gold plated connector LLT

    84V 10A + waterproof gold plated connector LLT

    Lipo 48V 5A + waterproof gold plated connector LLT

    Controller

    48V/32A with recuperation and 4 modes PAS / 25kph 250W / 32kph / unlim

    72V/70A with recuperation and 4 modes PAS / 25kph 250w / 32 kph / unlim

    SW1000 48V 27A with recuperation and 4 modes PAS / 25kph 250w / 32 kph / unlim

    Engine

    GTS1000 6T 205/30

    GTS5000 4T 205/45

    GT1000 48V 1000W

    Security

    • Bluetooth
    • Keychain
    • Start/Stop button
    • Remote launch
    • Alarm
    • Motor blocking

    Distance

    380 km

    280 km

    180 km

    Max speed

    50 km / h

    80 km / h

    42 km / h

    Weight

    43 kg

    62 kg

    27 kg

    Price

    $6 000

    $7 000

    $4 499

    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%)

    Assumptions

    • It is planned to start construction of the plant in the end of 2018 and start operations in the second quarter of 2019.
    • The output capacity of the plant will be 6,000 electric bikes per year (500 units per month), in accordance with the optimal efficiency of the equipment and one shift. The production of 500 electric bikes per month is planned to be reached by the end of 2019.
    • Until the end of the first quarter of 2019, all bikes sold will be categorized as bicycles that will be produced by Chinese contractors.
    • When the plant starts operations in Ukraine, the cost of production of electric bicycles will be decreased by 30% in the first three years. Reducing the cost of production is associated with a change in the cost of delivery of spare parts instead of delivery of semi-finished products from China to Ukraine, a lower price of Ukrainian labor as compared to the Chinese, the elimination of trips of quality controllers and other factors.
    • Because of the US protectionist policy with respect to Chinese products, Delfast has the opportunity to reduce the cost of finished products by 20% compared to Chinese products.

    The main parameters of the plant and production:

    • Location - Ukraine
    • 3 500 m2 - area of production space and 6 500 m2 - warehouses
    • 5 years - useful life of equipment
    • 1 product line
    • 4 working shifts
    • 178 employees at full output of the plant
    • 6,000 bikes per year

    Offer to investor:

    • Required investments: $ 6.5 million (it is possible to discuss phased and partial participation in financing).
    • Use of funds:
    • $1.9M (29%) - machinery, equipment, construction and commissioning of production;
    • $1.8M (28%) – trade financing and stock;
    • $1.8M (27%) - marketing;
    • $1.0M (15%) - general and administrative expenses and business development.
    • Offered share of the company to the investor: 25% of the parent company Delfast Inc. (Delaware, C-corp).
    • Projected payback period of the investment: 24 months.
    • Expected total net operating profit of the company for 5 years (2019-2023): $ 80 million (investor's share - $ 20 million).
    • Capitalization of the investor's share in 5 years: $ 83.3 million (EBIT * 8).

    Detailed information on the project is available on request.

    InVenture officially represents Delfast to as investment advisor.

    Галерея

    • Delfast2
    • Delfast3
    • Delfast4

    Карта

    Контакты

    Name: Alex

    E-Mail: info@inventure.ua

    Phone: +38 097 772 72 92

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