CEO Stefan Ytterborn confirmed to TechCrunch that electric motorcycle startup Cake filed for bankruptcy on February 1.
According to Swedish media reports, just before filing, the Swedish company was in the process of a funding round, but apparently investors backed out, causing the company to struggle. Eatburn declined to comment on what happens next. While it’s unclear whether Cake has filed for bankruptcy protection or is insolvent, Ytterborn did tell Industry Daily that he has “no idea other than to find a solution in one form or another.” His comments suggested the company had applied for protection.
Cake, known for building high-design bikes, raised $14 million in Series A funding in 2019. Subsequently, in 2021, it received a US$60 million Series B financing led by Swedish pension fund AMF. The company said at the time that the funding was intended to fund manufacturing facilities in Europe, North America and Asia and expand its retail capabilities.
Cake has been struggling lately, though. In November, the company recalled a moped because the steering column could break. Just weeks later, the company recalled its flagship Kalk electric motorcycle after a fire broke out at a dealership in South Korea. Ytterborn confirmed to Swedish media outlet Breakit last week that the company would be unable to pay employees.
Cake’s woes are just the latest development in the broader electric vehicle landscape.Passing pedestrians bankrupted bird File for bankruptcy. Micromobility.com (formerly Helbiz) is delisting From the Nasdaq stock exchange.Thiel and Dot decide merge to find a better way forward.
Perhaps most relevant to Cake, however, is the case of Vanmoof. The Dutch high-end e-bike maker filed for bankruptcy protection last year. But it found a buyer in e-scooter company Lavoie, which has since gotten the brand back up and running.
