Vok Bike, a startup focused on creating e-cargo bikes for last-mile deliveries, has successfully completed a €3.8 million seed funding round. This includes contributions from Estonia’s SmartCap, Metaplanet owned by Jaan Tallinn, Specialist VC, and Sunly.
Environmental Focus and Market Need
The funding will boost Vok Bike’s mission to tackle environmental issues by expanding the development of its cargo bikes. Sille Pettai, the Fund Manager at SmartCap, which is the main contributor to Vok Bike, highlighted the growing need for innovative solutions in the transportation sector, especially given the increased cargo volumes. The Estonian SmartCap Green Fund, established in 2022, aims to invest in startups that target solving environmental problems and achieving climate goals.
European Expansion and Efficiency
Vok Bikes has established a presence across various European cities, including London, Munich, Amsterdam, Stockholm, and Tallinn. They serve clients like Wolt, Donkey Republic, Mathem, and Foodora. According to Vok Bikes’ CEO, Indrek Petjärv, their bikes result in 24 times fewer CO2 emissions, lower costs per kilometer by 5 times, and are 60% faster than cars in urban areas.
Growth in Cargo Bike Industry
The European cargo bike industry, now valued at over €1.2 billion, is experiencing rapid growth, doubling last year alone. This growth has been partly spurred by local governments pushing for carbon neutrality and using tools such as congestion charges and parking costs to promote sustainable alternatives. Various industries like food and parcel delivery, property management, and maintenance services are increasingly turning to cargo bikes.
New Product Launch and Future Plans
Recently, Vok Bike unveiled a new model in the UK, featuring five times the cargo space, targeting multinational freight companies and large e-commerce businesses. With the latest funding support, Vok Bikes plans to roll out 1,000 more cargo bikes across Europe in the next year.
Support from the European Union
The SmartCap Green Fund’s investment in Vok Bike was also supported by the European Union’s recovery plan, NextGenerationEU, signaling an alignment with broader efforts to foster green innovation and sustainable practices.