Lug+Carrie, a Melbourne-based eBike subscription startup, has raised $5 million in bridge funding as it looks set to expand globally.
The company is looking for a Series A, but was keen to capitalize on local demand before entering new markets such as the United States.
The funding will be used to secure more inventory for local growth and to target offshore markets. . The company wants to start in Brisbane within a few weeks and in Canberra by the end of 2022.
Siblings Ben and Dan Carr launched Lug+Carrie in 2019 as a premium e-Cargo bicycle subscription company, focused on replacing city car journeys. They then expanded to Sydney, supplying brands such as Tern Bicycles and Bosch eBike Systems. The eCargo bicycles are specially designed to safely transport heavy loads and passengers.
The startup has launched several partnerships with local and state governments, including Moreland City Council’s Ride and Stride program and Transport for NSW.
Co-founder Dan Carr said Lug+Carrie will launch in the US through a soon-to-be-announced joint venture with one of their undisclosed investment partners.
“This funding is a reflection of our recent success and growth; we are more than excited to continue to grow and drive change in cities across Australia that are looking for cheaper, more convenient and more sustainable commuting,” he said.
Ecotone Partners helped with the increase. Co-founder Amanda Goodman said the unit’s economy and impressive month-over-month growth captivated investors in just two years.
“Lug+Carrie has grown rapidly in Melbourne and Sydney while demonstrating strong operational performance, which has resonated with investors looking to invest outside the j-curve in growth companies with a profitable business model,” she said.
“Lug+Carrie is going through a really exciting period of growth; we are proud to have played a part in bringing in this increase and supporting the company at this unique turning point in their journey.”