German development bank KfW and venture capital firm BayBG also invested, together with existing shareholders.
GOVECS said it will use the proceeds of the financing round to build out its sales and marketing activities, to broaden its product portfolio and to strengthen its leading position in the emerging European market for electric scooters.
GOVECS was founded in 2009 by a team of executives from the electric scooter industry. The company develops, assembles and distributes electric scooters, which are manufactured in its plant in Wroclaw, Poland.
Despite e-mobility only being at the starting point of its adoption curve, the demand for electrical two-wheeled vehicles is expected to grow rapidly in the coming years due to various drivers, such as increasing petrol prices, rising congestion in urban centres, CO2 emission reduction targets and a growing number of areas restricting the use of combustion engine vehicles to reduce local air pollution.
The company fits Gimv’s strategy to partner with innovative companies active in growing markets and to help them accelerate their transformation, according to Hansjörg Sage, a partner at the firm.
He said, “We have been already following GOVECS and the industry for several years and we recognized that the company managed to establish itself as a leading European player in the e-scooter market within a period of only 3 years. GOVECS truly stands out vis-à-vis other brands with its sole focus on electric mobility. This focus results in an in-depth know-how, in perfectly adapted production methods and in outstanding quality and performance of its products.”
Thomas Grübel, CEO of GOVEC, added, “The new capital gives us the opportunity to increase the strategic investments in our sales and marketing activities, R&D program and supply chain. This will enable us to strengthen our leading position in the emerging market for e-scooters. We are excited to welcome Gimv as a new shareholder and partner.”
Following the deal Gimv’s Sage and investment principal Robert Gallenberger will join GOVECS’ board of directors.
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