Cowboy, the Brussels-based producer of electric bicycles, reported massive losses last year, with those losses even exceeding revenues for the first time in the company’s history.
The company was affected by the same parts shortages and logistical problems plaguing many sectors as a result of the Covid-19 pandemic.
These are worldwide problems in the entire bicycle industry, and delivery for Cowboy was delayed by many months. Because Cowboy isn’t paid until bikes are delivered, turnover fell below expectations.
Losses and production issues due to pandemic
Operating losses doubled over last year from €9.8 million to €20.1 million, De Tijd reports, and net losses sat at €23.4 million – a number equal to the sum of Cowboy’s losses in the previous five years. Turnover remained the same as 2021 at €16.1 million.
But fresh money is flowing in: the young start-up raised €71 million through investment companies and over €3 million through crowdfunding.
An initial campaign with the goal of raising €1 million shattered that ambition with over €3.1 million as of Friday, and earlier this year they raised €80 million from investors.
Parts shortages and logistical issues especially affected output of their newest model, the Cowboy C4. The company hopes the backlog can be cleared this year, as production has been ramping up in the past months.