Expanding production of Delfast e-bikes
Delfast It is a young and ambitious company that started as a unique one-hour delivery service in Kiev on Chinese electric bikes in 2014. The next step was to produce electric bikes in China under its own brand, keeping in mind the accumulated experience and the use of unique technologies.
Today the company has more than 7,000 pre-orders worldwide and will start the industrial production of electric scooters with record indicators, both in terms of speed and travel time with a single charge in Ukraine.
- Production: China
- Research and development: Ukraine
- Registration: Delaware, USA
Delfast e-bike - holder of the Guinness Book of Records - "The longest distance ever." E-bike Without recharging (367 km in 2017).
In 2018, the company's sales volume reached 125,000 USD, in 2019 - 552,000 USD, and it is expected to be 1,000,000 USD in 2020; The forecast for 2021 is $ 20,000,000.
Capital increase: 815,000 Dollars (5 rounds of venture financing: Imperious Group VC, Kickstarter, Business Angels).
Done plural $ 165,000 In 2017 on Kickstarter
Company evaluation as of October 2020: $ 15 million
Fuel accounts for up to 30% of the cost of delivering goods for short distances and delivery service costs from $ 1,700 to $ 2,000 per year per motorbike. Private motorcycle users spend an average of $ 400- $ 1000 per year. The e-bikes available in the market are basically an entertainment vehicle. They are not designed for long-distance travel and do not have the capacity to quickly charge to completely replace car or motorcycle delivery.
Delfast currently has three successful e-bike models, each targeting a specific audience.
Speed enthusiasts who do not accept compromises and want the best - the fastest, the strongest and most of Delfast.
The legendary redesigned e-bike with longer range on a single charge is best for the professional users who not only commute to work but also have to travel a lot during the day.
Unmatched performance on any terrain, this bike is best suited to wildlife enthusiasts, hunters, off-road enthusiasts and anyone looking for more comfort on public roads.
Designed by a team of professional designers and engineers, Delfast e-bikes offer the latest technology unlike anything else on the market.
- Power reserve. The patented battery management system, engine control unit and other components increase mileage by 30%.
- Energy. Integrated intelligent energy recovery technology makes the motor more powerful and recovers energy during braking.
- Mobile application and personal web account. Allow to stay connected, analyze GPS, speed, telemetry and other data. Intelligent security and alarm system for more safety.
- Data analysis system. The patented loT unit uses our proprietary software and mobile application to optimize the system and improve efficiency.
The e-bike market is one of the fastest growing two-wheeled segments and is expected to show double-digit growth through 2025, reaching around US $ 39 billion.
The intended audience of consumers
- Business sector - 55% (subsidiaries and partners - 17%, courier and delivery services - 16%, energy, utilities - 8%, franchise - 9%, police, medicine, military - 6%)
- B2C segment - 45% (online store ownership - 22%, wholesale stores - 13%, bike sellers (distributors) - 9%, crowdfunding channel - 1%)
The company is run by experienced professionals and enthusiastic businessmen
Project road map
Economy in units: The additional increase in sales will reduce fixed costs per bike and save money by delivering wholesale bikes to major sales territories.
|President||Top 2.0||off road|
|Average sale price||4488||5389||5560|
|Rewards for the sales force||245||310||350|
|Paypal / Stripe commission (3.75%)||184||232||262|
|Advertising / Marketing / Public Relations||123||123||123|
|Profit after deducting variable costs||853||1105||1458|
|EBITDA per bike||133||385||738|
|EBITDA per bike at 1 thousand bikes||1253||1505||1858|
Required investment: $ 3 million In equity capital under SAFE or debt financing to expand its operations, develop new models, improve existing models, and expand the existing product portfolio.
Trends for investment development:
- 47% - working capital to create warehouse for products, reduce production and shipping costs, and reduce wait times for new customers
- 20% - marketing
- 8% - expansion of employees
- 7% - patents and certificates including DoT (US) and CE (European Union)
The proposed share of the company to the investor: 20% of the parent company, Delfast Inc. (Delaware, C-corp)