swft Raises $10M Seed Round for e-Mobility Expansion

Swft Secures $10 Million Seed Funding for Expansion

Swft, an electric mobility company, has successfully raised $10 million in seed funding. These funds will be allocated towards broadening its range of light-duty vehicles, enhancing its team, and optimizing its inventory and supply chain operations.

The company currently has a retail agreement with Best Buy for its three new e-bikes and a new e-moped. Swft is actively seeking additional retail partnerships to further expand its market reach.

Company Origins and Growth

Swft was officially launched in February 2020 as a direct-to-consumer business. Its development took place within the NYC-based venture advisory firm, On Spec, over the course of the following year.

The company initially introduced electric hoverboards in December, followed by e-bikes and an e-moped in August. Now, as a recognized brand, Swft is rapidly developing a comprehensive line of personal electric vehicles (EVs) over the next 18 months, according to co-founder and CEO, David Liniado.

Navigating a Competitive Market

Swft enters a growing e-bike market with significant competition. Established players like Rad Power Bikes, VanMoof, Cowboy, and Aventon already hold substantial market share.

However, demand remains strong. A report by NPD market research indicates a 240% growth in e-bike sales from July 2020 to July 2021, compared to only 15% growth in general cycling equipment.

Successfully addressing global supply chain challenges and meeting this demand with its affordable vehicles will be crucial for Swft’s success.

A Strategic Advantage: Supply Chain Expertise

Liniado believes Swft’s logistical capabilities provide a key competitive advantage. His prior experience as VP of new ventures and business development at Cox Automotive instilled in him an appreciation for the benefits of micromobility.

Furthermore, co-founder Joey Wahba’s background as CEO of electronics manufacturing company DGL Group contributed to the development of “a really comprehensive supply chain down to the parts.”

This has enabled Swft to secure approximately 90% of its projected product volume from its manufacturing partners in China. The company anticipates having all its inventory delivered to the U.S. by Christmas.

Future Vehicle Lineup

Swft plans to expand its product line to cater to diverse use cases. In 2022, the company intends to launch both a street-legal and an off-road e-motorcycle, targeting both individual consumers and commercial delivery services.

Additionally, Swft is developing a low-speed, four-wheel vehicle resembling a two-seat convertible, currently undergoing testing within the U.S.

“The last of our expansion plans is the development of a three-wheel vehicle that looks most like a Vanderhall, but with our own proprietary designs, that will be ready for launch in early 2023,” Liniado stated.

Affordable Pricing and Competitive Value

Swft’s supply chain efficiency allows the company to offer products at competitive price points. The Fleet e-bike and the Volt steel road bike are both priced at $999, offering top speeds of around 20 mph and ranges of 37 and 32 miles, respectively.

The Zip, a heavier-duty model with fat tires, is available for $1,399. This compares favorably to Rad Power Bikes’ offerings, which range from $1,799 to $1,999.

“Our whole mantra with Swft is affordable luxury and bringing electric mobility to the masses,” Liniado explained.

Growth Targets and Marketing Strategies

Swft aims to reach 10,000 riders in the United States by the end of the current year, with significantly higher numbers projected for the following year.

To achieve this, Swft is investing in collaborations with fashion brands and exploring innovative ways to allow potential customers to experience its vehicles. These include rent-to-own options, additional partnerships, and pop-up stores planned for the second half of 2022.

Future Funding Plans

Given its ambitious plans, Swft anticipates needing further funding. The company intends to raise a Series A round between $25 million and $50 million in the first quarter of next year.

The current seed funding round was led by strategic angel investors including Martin Lauber, managing partner of 19 York; Mark Joseph, CEO of Mobitas Advisor; and David Zwick, managing director of RedCap Technologies.