The Ukrainian investment syndicate Toloka.vc has financed the British company GIN e-bikes, which specializes in the production of electric bikes and is transitioning from a traditional sales model to a subscription-based rental model under the brand PLUTO. The total investment amounted to £186,000, provided as a two-year loan at an interest rate of 12% per annum secured by the company’s fleet of electric bikes.
This is reported by Finway
Scaling the Rental Business in London
GIN e-bikes will use the funds to acquire 160 new electric bikes and to expand its rental model in London. Over the next six months, the company plans to attract at least 100 active users to its rental service.
Financial Model and Returns for Investors
The investment by Toloka.vc in GIN e-bikes marks a shift for the Ukrainian fund towards generating income from operational businesses instead of long-term venture investments with higher risks. The PLUTO subscription model allows for stable profit forecasting, as it operates in developed markets and is focused on quick returns.
The business model of GIN e-bikes is significantly more profitable than traditional sales: renting one bike generates £2,455, while selling it brings in £1,140. With 37 active subscribers, the average income from one bike (rental and additional services) is about £158 per month. After a year of use, the bikes are sold on the secondary market.
GIN e-bikes’ strategy involves selling the electric bikes on the secondary market after a year of operation, allowing the company to generate additional profit and update its fleet of equipment.