Tallinn-based e-cargo bike provider Vok Bikes has raised €3.8 million in a seed funding round to expand its operations across Europe.
Vok recently launched a new XL model with five times the cargo space as it looks to enter a new customer segment of multinational freight companies and large-scale e-commerce businesses.
With the additional funding and ongoing deliveries, the company plans to introduce 1,000 more e-cargo bikes throughout Europe in the next year.
The round attracted investments from SmartCap, Metaplanet, Specialist VC, Sunly, angel investors, as well as a grant of €300,000 from Enterprise Estonia.
Co-Founder and CEO of Vok Bikes Indrek Petjärv told Zag Daily: “We’re currently heavily focused on London and the UK but increasingly also on the Netherlands, Denmark and the largest urban areas in Germany.”
With customers in London, Munich, Amsterdam, Stockholm and Tallinn, Vok Bikes provides its vehicles to companies like Wolt, Donkey Republic, Mathem, Foodora, and Estonia’s postal service Omniva.
According to the company, its bikes enable trips with 24 times fewer CO2 emissions, a five times lower kilometre cost, and are 60% faster than cars in urban settings.
Standing out from the crowd
To set itself apart from competitors, Vok Bikes focuses on custom developments rather than using off-the-shelf parts like some of the other players in the industry.
“All key components are developed in-house, which helps with cost reduction, shorter development cycles and increased control over the supply chain. By key components, I mean – batteries, drivetrain, brake system, electronics and control systems,” said Petjärv.
The company’s custom solutions have reduced the total cost of ownership (TCO) and brought maintenance intervals down to once a quarter, compared to the 3-4 week intervals seen in the industry.
Vok’s team of former Student Formula engineers have also introduced electronic driving aids and innovative features to enhance safety. This includes an ABS braking system and traction control.
“Vok Bikes clearly contributes to solving environmental problems with the development of cargo bikes, particularly in the transportation sector as cargo volumes are increasing and there is a need for new solutions,” said Sille Pettai, Fund Manager and Member of the Board of SmartCap.
