UBCO Secures $10M Investment from TPK | Electric Utility Bikes

Ubco and TPK Holdings Announce Strategic Partnership

Ubco, a New Zealand-based company specializing in electric utility bikes, has revealed a new strategic alliance with TPK Holdings, a Taiwanese manufacturer of electric components.

Series B Funding and Supply Chain Enhancement

As stipulated in the agreement, TPK Holdings will spearhead Ubco’s Series B funding round with a $10 million investment. This brings the total funding secured by Ubco to $23 million.

Beyond financial support, TPK Holdings will also provide substantial assistance with Ubco’s supply chain, alongside expanded scaling and manufacturing capabilities in the coming months.

Scaling Production Capabilities

“This partnership is pivotal in our evolution,” stated Katherine Sandford, CEO and executive chair of Ubco, in an interview with TechCrunch. “It allows us to transition from limited, individual production runs to continuous, large-scale production, potentially reaching thousands, and even tens of thousands, of vehicles.”

Previous Investment and Expansion Plans

TPK Holdings had previously participated in Ubco’s $10 million convertible note round in June. This round also included investments from various U.S. and New Zealand-based investors, including Seven Peak Ventures, Nuance Capital, GD1, Snowball Effect, and Enterprise Angels.

Ubco indicated at that time that the funding would facilitate its international expansion, with a particular focus on the United States market.

Ramping Up Production of the 2X2

Initially, TPK’s extensive network of global suppliers will be instrumental in accelerating the production of Ubco’s primary product, the 2X2 electric utility bike.

The 2X2 is available in two versions: an off-road model designed for agricultural use and a city version tailored for last-mile delivery services.

Currently, Ubco operates two production facilities in China – one dedicated to bike assembly and another for battery production. Sandford explains that TPK’s support will ultimately contribute to reduced production costs.

New Vehicle Development

Ubco is also preparing for the launch of two new vehicle models, for which TPK Holdings will provide dedicated manufacturing support.

Production of the FRX1, an off-road trail bike aimed at the recreational market, is anticipated to commence in 2022. Simultaneously, the company is developing a prototype for a four-wheel utility vehicle, also slated for pre-release in the same year.

Commitment to ESG Values

The investment from TPK Holdings further strengthens Ubco’s dedication to its Environmental, Social, and Governance (ESG) principles.

“TPK’s profound expertise in managing complex electronics manufacturing supply chains will be incredibly valuable in addressing the industry-wide challenge of product recycling and responsible end-of-life management through collaborative efforts,” Sandford commented.

“This funding empowers UBCO to aggressively pursue R&D initiatives, such as advancements in cell chemistry, which require substantial investment. It also enables us to expand our team, enhancing our testing capabilities and focusing on the management of our products at their end of life.”

Circular Lifecycle and Responsible End-of-Life

Ubco co-founder Timothy Allan previously emphasized the company’s commitment to responsible vehicle end-of-life management to TechCrunch. This begins with designing products that are modular, allowing for disassembly into recyclable components.

“Coupled with our focus on developing an intelligent platform, which supports subscription-based business models, we are creating a circular lifecycle where we are incentivized to maximize the product’s useful lifespan,” Sandford added. “This additional funding will help us establish the platform, operations, and commercial strategies needed to elevate this circular approach.”