Electric motorcycle startup Cake has filed for bankruptcy, according to CEO Stefan Ytterborn. The Swedish company was in the midst of a funding round, but the withdrawal of an investor led to the filing, as reported by Swedish media. Ytterborn declined to comment on the company’s next steps, but indicated that finding a solution is a priority.
Key Takeaway
Cake, a prominent electric motorcycle startup, has filed for bankruptcy following the withdrawal of an investor during a funding round. The company’s struggles reflect broader challenges in the e-mobility sector, as other companies have also faced financial difficulties.
Struggles and Funding Rounds
Cake, known for its high-design bikes, raised a $14 million Series A in 2019 and a $60 million Series B round in 2021, led by Swedish pension fund AMF. The funding was intended for expanding manufacturing facilities and retail capabilities in Europe, North America, and Asia. However, the company has faced recent challenges, including a recall for one of its mopeds due to a steering column risk and a flagship Kalk e-motorcycle catching fire in a South Korean dealership. Additionally, Cake confirmed its inability to make salary payments to employees.
Industry Challenges
Cake’s struggles reflect broader challenges in the e-mobility sector. Other companies, such as Superpedestrian, Bird, and Micromobility.com, have also faced financial difficulties. Vanmoof, a high-end e-bike maker from the Netherlands, filed for bankruptcy protection last year but was able to find a buyer in electric scooter company Lavoie, which has since revived the brand.
