Fresh $1 billion investment to provide big boost to Canyon’s 4-wheeled electric pedal car concept
German bicycle manufacturer Canyon’s recently announced electric pedal car concept called the Canyon Future Mobility Project has received a big boost from a new round of investment that reported collected nearly $1 billion.
Canyon has long been known as a producer of high-end bicycles, but it recently expanded its business by entering the arena of electric bicycles. The shift took place after the deadly COVID-19 pandemic that led to increase in demand for electric bicycles to maintain social distancing, which is not possible in public transport.
Pushing ahead with its plans to produce e-bicycles, particularly the extraordinary pedal car concept, Canyon has successfully attracted the attention of a number of investors. Its latest investment round, which is the largest to date, attracted Belgium investment group Groupe Bruxelles Lambert (GBL), which is known for pumping huge amounts of money in businesses like Adidas, Glenlivet, and Absolut Vodka.
Tony Fadell, the former senior vice president of American tech giant Apple Inc. and co-creator of the iPod, also participated in the latest round of funding.
While the company didn’t publicly disclose the exact details of its stake sale, sources claiming direct knowledge of the particulars valued it at approximately €800 million ($976 million).
Roman Arnold, founder of Canyon, said in a statement that his company achieved a lot through technology, global expansion and sporting success, and now it would go further to take advantage of all other available opportunities.
Commenting on the investment round, Arnold added, “Now is the right time to go further on the offensive, to take advantage of all the opportunities — and they are many. That’s why I’m very pleased to partner with GBL, who have convinced my team and me with their passion for our business, years of experience and long-term focus.”
The fully-enclosed pedal car would feature a recumbent-style laid-back seating position and stick steering. In the rear, there would be space for a smaller passenger or cargo storage. The EV would include a large 2,000 watt battery rated for 150 km (93 miles) of range. Top speed has been pegged at 60 km/h (37 mph).
Over the last seven years, Canyon has enjoyed a growth of around 25 per cent per annum and its revenue for the current year has reached almost half a billion US dollars. Flush with cash from the recent investment rounds, the company is expected to double down on its entry into the e-bike market, and make headway on new projects like the pedal car concept.