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Melbourne-based eBike subscription provider Lug+Carrie has secured $5 million in bridge funding from private investors ahead of a planned Series A round, with the capital to help the startup break into new markets.
Founded in 2019 by brothers Ben and Dan Carr, Lug+Carrie says the funding will allow the company to secure more stock to capitalise on local growth opportunities before tackling the larger US market.
Currently, the company offers customers in Melbourne, Sydney and Brisbane subscriptions for Tern Bicycles and Bosch eBike systems - two electric bike brands that are able to carry children or cargo on the back.
As such, Lug+Carrie says it is aiming to replace car and van trips for urbanites and accelerate the shift towards active forms of transport.
Lug+Carrie co-founder Dan Carr says the bridge funding is a positive sign for the company’s future.
“This funding is a reflection of our recent success and growth; we are beyond excited to keep growing, and continue to drive change in cities around Australia, who are looking for cheaper, more convenient, more sustainable commutes,” Carr explains.
The next market on the startup’s national rollout is Canberra, where Lug+Carrie is aiming to operate in by the end of the year, following a successful rollout into Brisbane this month.
Amanda Goodman, co-founder and director of Ecotone Partners who advised the company on the raise, says investors were attracted to Lug+Carrie’s growth prospects.
“Investors were drawn to the business’ attractive unit economics and impressive month on month growth; in just two short years, Lug+Carrie has grown rapidly across Melbourne and Sydney and at the same time demonstrated strong operating performance, which resonated with investors seeking to invest beyond the j-curve in growth businesses with profitable operating models,” says Goodman.
“Lug+Carrie are experiencing a truly exciting growth period; we are proud to have played a part in securing this raise and supported the business at this unique inflection point in their journey.”
As for the company’s international expansion ambitions, Lug+Carrie says it will be launching in the US via a soon to be announced joint venture with one of their investment partners.
Further, the company hopes to break into the commercial ‘micrologistics’ space by expanding its proposition and providing Tern Bicycles and Bosch eBike fleets to companies seeking to replace vans or traditional eBikes for employees.
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