FAZUA gets €15 million financing to drive growth of e-bike system

FAZUA gets €15 million financing to drive growth of e-bike system

FAZUA, the Munich-based startup that develops drive systems for e-bikes, has announced €15 million in growth financing, led by UVC Partners. The European Investment Bank (EIB) loaned €12 million in venture debt, backed by the European Fund for Strategic Investments.

A while before the micromobility trend manifested as rentable street scooters, FAZUA began in 2013 as a manufacturer of lightweight e-bike drive systems. The product is surprisingly compact: the system, including motor and battery, fits in the down tubes of traditional bicycles. (The down tube is the diagonal bar that essentially connects the handlebars to the pedals.)

Now over 35 European manufacturers are using the system in the e-mountain, e-urban, e-gravel, and e-racing bike segments. The company’s growth and market leadership convinced investors to participate in the latest round.

“With its consistent and profitable growth since our first investment in 2017, we are proud to double down on FAZUA as it increases its footprint in the billion-euro and fast-growing e-bike market,” said Benjamin Erhart of UVC Partners.

The funding will help FAZUA expand its product range beyond the original drive system explained above, and CEO Fabian Reuter stressed the importance of maintaining quality as the company scales.

Reuter said: “The capital provided by the EIB is the ideal financing instrument for us in our current business phase. In addition to the ‘evation’ drive system, which has already been very successfully launched on the market, we can now invest even more in the expansion of our product range. It is crucial for us to maintain our successful business model with the highest quality standards, production under our own roof in Germany and reliable partners, most of whom also come from Europe.”

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