VanMoof asks investors for additional funding to continue operations Giant Group takes minority stake in Stages Cycling

AMSTERDAM, the Netherlands –

The trendy Amsterdam-based brand VanMoof has seen its turnover hike since 2017. Strong global branding made it an attractive investment for private equity. But VanMoof has also experienced the back side of current supply chain problems, just like many others in the industry.

VanMoof ended up in January asking its suppliers for payment postponement, just like Giant Group did in December when it was already clear that the Taiwanese company was not the only one asking for suspension of payment at its suppliers. However, for VanMoof, the situation seems much more pressing than at Giant.

Future in danger for VanMoof

“Without a capital injection, the company warned its future was in danger within two months,” reported the Dutch financial newspaper, Het Financieele Dagblad. The preliminary annual report for 2021, filed just after the turn of the year, stated that the e-bike manufacturer was discussing with investors and suppliers to pay between €10 and €40 million. It now appears that only existing investors participated in the latest capital injection. These include

London-based investment firms Balderton and China’s Hillhouse.

Warranty and repair

Since the company’s start in 2008, VanMoof has targeted a young and trendy audience. A disruptive strategy was developed to enter the traditional market. While sales increased year by year, the costs rose even faster. According to the 2021 financial report, VanMoof had to put €8 million aside just for warranties and repairs. The Het Financieele Dagblad reports that VanMoof generated a turnover of €83 million that year and a loss of €78 million.

The company has continued to invest in innovation. In 2022, the company focused on launching its new ‘hyperbike’ , the VanMoof V. According to CEO Taco Carlier, this ‘hyperbike’ with a flexible speed limit would contribute to a bicycle revolution that ensures that all unnecessary car journeys are made by bicycle.

TAIPEI, Taiwan – Two filings from bicycle producer, Giant Manufacturing Company Ltd., ran over the ticker of the Taiwan Stock Exchange (TWSE) on 20 January. Both filings are related to an investment in the US indoor cycling specialist Stages Cycling LLC.

The first filing at the TWSE informed about Giant’s takeover of a minority stake in US Smart Bike, Powermeter and cycle computer expert Stages Cycling. The second filing, which followed just a minute later, informed that Giant Group had given the US offshoot of its wholly-owned subsidiary Gaiwin BV – the Gaiwin US I Investment Inc. –a cash injection of US$20 million (€18.4 m).

A broader bike portfolio for Giant Following approval at a tentatively convened board meeting, Giant Group, through its subsidiary Gaiwin BV and its Gaiwin US I Investment, acquired a minority 32.5% common stock interest in Stages Cycling for US$6.5 million (€5.98 m). Added to this are convertible corporate bonds for US$13.5 million (€12.42 m). This brings the total amount to US$20 million, which the Taiwanese have given to the US company Gaiwin US I Investment Inc. for the acquisition of the above-mentioned Stages minority share. With the acquisition of a minority stake in Stages Cycling, Giant Group’s board is said to be convinced that the move will expand the group’s presence in the indoor cycling market and build a broader bike ecosystem. As a result, Taiwan’s number one bicycle producer is now able to offer consumers a comprehensive portfolio of indoor and outdoor cycling products.

US player with European presence Stages Cycling, based in Portland, Oregon, has become a leading provider of indoor cycling and professional cycling training products. Since 2013, the supplier has also been present in the European market with Stages Cycling Europe (aka Shore Sportsworks GmbH) based in Kirchzarten, Germany. Some of the US supplier’s indoor bikes have already been produced by Giant for several years. In addition, Giant Group also sells some Stages GPS computers worldwide under its own brand name. (JB)