Second share issue
Just before the turn of the year in 2021, WATT Mobility managed to secure another €1.5 million investment from the well-known mobility accelerator Bloomit. That investment allowed WATT to strengthen its position in the market. To grow further towards profitability, WATT is looking for new capital. Once again, Bloomit invests in the equity and the founders and investors of the first round also make a share premium payment. In this second round of investment, WATT has made it possible for other investors to co-invest in the company on the same terms as Bloomit and the founders.
The share issue is made possible by and on Seedrs, Europe's largest funding platform for SMEs. This IPO on Seedrs is quite unique given their rigorous due diligence process. When going live, they will bring WATT to the attention of hundreds of thousands of European investors and they therefore want to guarantee the level of quality.
Founder and CEO, Frans Nomden says: "We are proud to announce the partnership after an intensive due diligence process. Seedrs has connected more than one million investors, so to be on that stage is quite an honor. We want to give our customers, retailers, and ambassadors the first chance, meanwhile, more than 550 thousand euros have already been pledged by this group. It is also already possible for others to reserve shares now so you don't miss this opportunity."
Unique business model
A few brands dominate the e-bike market. These brands mainly focus on direct-to-consumer (D2C) business models to achieve higher margins but struggle with after-sales support. WATT differentiates itself through excellent value for money and a "reseller-first" omnichannel approach, which has allowed them to grow rapidly while providing reliable after-sales support. Frans Nomden explains as follows:
"Where similar companies with online business models have run into financial difficulties, WATT's business model proves future-proof when it comes to repairs, parts, stock, and quality assurance. Our goal is to have sold more than 20 thousand bikes through 800 European resellers and our webshop by 2027."
With one million euros of growth capital, WATT hopes to make the company profitable as soon as possible and increase and solidify its place in the European market. Half of the investment amount will be used to expand working capital. The rest will be invested in product development, marketing, and the team. In 2022, WATT achieved a turnover of €2.2 million. The goal is to have increased this turnover tenfold by 2026. According to forecasts, WATT is expected to become profitable in 2024.