Electric motorcycle startup Cake filed for bankruptcy Feb. 1, CEO Stefan Ytterborn confirmed to TechCrunch.
According to Swedish media reports, the Swedish company was in the middle of a funding round before the filing, but an apparent investor withdrawal pushed the company to the brink. Ytterborn declined to comment on what would happen next. While it's unclear whether Cake has filed for bankruptcy protection or bankruptcy, Yetterborn told media outlet Dagens Industry that he has no choice but to “find a solution in one format or another.” His comments suggest the company has filed for protection.
Cake, known for making high-design bikes, raised a $14 million Series A in 2019. It was followed by a $60 million Series B round in 2021 led by Swedish pension fund AMF. The capital is intended to fund manufacturing facilities in Europe, North America and Asia and increase its retail capabilities, the company said at the time.
However, Cake has struggled of late. In November, it issued a recall for one of its mopeds because the steering column was at risk of breaking. A few weeks later, South Korea recalled its flagship Calc e-motorcycle after a unit caught fire at a dealership. Ytterborn confirmed to Swedish outlet Breakit last week that the company could not make salary payments to employees.
Cake's struggles are the latest in the wider world of e-mobility. Super pedestrian went out of business and the bird Filed bankruptcy. Micromobility.com — Formerly known as Hellbiz Removed from list From the Nasdaq Stock Exchange. Tire and Dot decided to merge To find a better way forward.
Perhaps most relevant to the cake, however, is VanMoof's case. The Netherlands-based high-end e-bike maker filed for bankruptcy protection last year. But it managed to find a buyer in electric scooter company Lavoi, which has since backed the brand up and running.