The French company raises 10 million euros. RED Electric wants to become a major player in the B to B market, but also in B to C. Its electric two-wheelers are on sale in FNAC Darty stores.
What if 2021 was the year of the take-off of the electric scooter market? The manufacturer RED Electric dreams of it and gives itself the means to achieve its ambitions. The young French growth announces, this Thursday, January 21, to have raised 10 million euros from Céleste Management and A-Venture.
This financing aims to support the growth of this company which has just launched a new range of vehicles (the Model E50, E100, E125). These electric scooters withstand 2,500 charge cycles and are offered for sale with four battery slots. The goal? Avoid having to recharge the vehicle too frequently.
Conquer the B to C market
“We are convinced that we have developed the most technologically developed electric scooter that brings the most benefits to customers,” said Bertrand de La Tour d’Auvergne, Deputy CEO of RED Electric. The company is raising the bar. “We want to become the leading manufacturer of electric scooters in France, in B to B as in B to C,” explains this former member of Segway.
Why the lines between scooters, bicycles and electric scooters are blurring
The company is on the right track for B to B: it claims a 40% market share in this segment, where it started its activity. But RED Electric also hopes to appeal to the general public. To do this, the company has forged an exclusive partnership with FNAC Darty, which markets its two-wheelers in its stores. “It is the ideal partner to present our products”, welcomes Bertrand de La Tour d’Auvergne.
A market that suffered in 2020
The market for electric two-wheelers (scooters and motorcycles) remains embryonic in France. Some 12,414 machines were registered in 2020, a figure down 11% compared to 2019, according to data from Avere (the national association for the development of electric mobility). Like the automotive sector, the market was held back by the closing of dealerships.
The 50cc scooter segment accounts for around 80% of sales of electric two-wheelers. In total, RED Electric claims to have sold “a little over a thousand” vehicles in 2020 and intends to accelerate this year. The fundraising of 10 million euros should also allow the company to create a production unit in France in 2022, where it would like to achieve “more than 80%” of the assembly of its vehicles. Because, for the moment, RED Electric assembles its two-wheelers in Asia, which is by far the biggest market for electric scooters in the world.