UBCO gets growth funding

Tauranga-based utility electric vehicles provider UBCO has secured US$10 million investment to help fuel global growth while fast-tracking research and market development.

UBCO has raised the funding through bringing on board investors Seven Peak Ventures, Nuance Capital and TPK Holdings while strengthening investments from GD1, Snowball Effect and Enterprise Angels.

Sustainable transport options are expanding and EV adoption is expected to multiply 10 times in the next decade, boosting UBCO’s on and off-road offerings like the UBCO 2×2 all-wheel drive electric motorbike used from agriculture to food delivery and more.

“We’ve reached a landmark point in our growth journey and are particularly excited about what these strategic global investors bring to the table during this phase for our business – technology leadership, production expertise and international connections,” UBCO co-founder and chief executive Timothy Allan says.

The 2×2 is an intelligent EV platform that includes vehicle and power systems, telemetry, cloud connectivity and data analysis, and enables UBCO to provide subscription.

Instead of buying the bike outright, businesses and consumers pay a subscription covering the vehicle, battery and servicing while UBCO retains ownership and stewardship.

UBCO predict this model will increase vehicle lifespan four times and produce 80% less carbon (during use) compared to an internal combustion vehicle (ICE), making the vehicles a more sustainable transport option.

Oregon based venture firm Seven Peak Ventures managing director Dino Vendetti says the US market has huge growth potential across many applications and UBCO will become more relevant than ever.

UBCO was founded in 2015 by Daryl Neal, Anthony Clyde and Timothy Allan, and has scaled rapidly during the past year, already doubling staff numbers in 2021 and expecting to triple the following year.

Revenue is forecast to climb from NZ$3 million in 2020 to more than $12 million in the next year with an increase in annual recurring revenue through subscriptions.

The investment will also be used to support recruiting globally.