Lug+Carrie, a Melbourne eBike subscription startup, has raised $5 million in bridge funding as it looks to expand globally.
The company is looking to a Series A, but was keen to take advantage of local demand ahead of tackling new markets such as the United States.
The funding will be used to secure more stock for local growth as well as tackling offshore markets. . The business is looking to launch in Brisbane within weeks and Canberra by the end of 2022.
Siblings Ben and Dan Carr launched Lug+Carrie in 2019 as a premium e-Cargo bike subscription business aimed at replacing urban car trips. They subsequently expanded into Sydney, supplying brands such as Tern Bicycles and Bosch eBike Systems. The eCargo bikes designed specifically to safely carry 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.
Cofounder Dan Carr said Lug+Carrie will launch in the US via 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 beyond excited to keep growing, and continue to drive change in cities around Australia, who are looking for cheaper, more convenient, more sustainable commutes,” he said.
Ecotone Partners assisted with the raise. Cofounder Amanda Goodman said the unit economics and impressive month-on-month growth in just two year had appealed to investors.
“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 model,” she said.
“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.”