Wednesday, February 21, 2024
HomeElectric MotorcycleSwedish Electric Motorcycle Company Cake Has Filed For Bankruptcy

Swedish Electric Motorcycle Company Cake Has Filed For Bankruptcy

Swedish Electric Motorcycle Company Cake Has Filed For Bankruptcy
While the electric two-wheeler market is booming in Asia, a string of recent developments seems to be making it evidently clear that the same cannot be said about the West. The adoption rate of electric scooters and motorcycles in North America and Europe has been slow, primarily due to concerns surrounding performance, range, and not to mention, high sticker prices. It is hardly surprising, therefore, to come across instances of promising electric two-wheeler startups going out of business. The latest company to be added to this list is the Swedish electric motorcycle company Cake, which has just filed for bankruptcy.
Swedish media reports indicate that the promising electric motorcycle maker was forced to file for bankruptcy after a last-ditch attempt to raise SEK 80 million ($76 million) in funding failed. The company has been under tremendous financial pressure in the past few months and has even failed to pay salaries to employees. The sudden development comes across as shocking, given that the company had — as recently as last week — announced its plans to expand to other regions in Europe.
In an interview with Swedish publication Di, Cake’s CEO Stefan Ytterborn revealed that the company had managed to secure 50% of the $76 million target, but some of the company’s investors who previously agreed to commit chose to drop out at the last moment, leaving the company with no other option but to file for bankruptcy.
As of 2022, Cake had a turnover of SEK 99 million — albeit with total losses amounting to SEK 263 million. Cake employed over 140 people and even had some presence in the U.S. with offices in Los Angeles and New York.

web-interns@dakdan.com

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