In mid-February, the Munich-based drive manufacturer announced Fazua At the end of January, Porsche AG secured a 20 per cent stake in the company - with a further purchase option or the option of a complete takeover. The car manufacturer has now confirmed the acquisition of all shares in Fazua.
In Fazua, we have found a strong partner with a wealth of experience in the bicycle industry. Fazua is known among experts as the founder of the 'light eBike' category - a company with a high level of innovation that fits in perfectly with the pioneering spirit of the Porsche brand. - Lutz Meschke, Deputy Chairman of the Executive Board of Porsche AG and Member of the Executive Board for Finance and IT
The future of the young brand therefore seems secure. But what are Porsche's general ambitions in the e-bike segment? And what role does Pon Holdings, whose conglomerate also includes bike manufacturers such as Cannondale, GT and Santa Cruz, play in this?
According to Porsche, all of its eBike activities are to be combined in the future by establishing two joint ventures with the Dutch company Ponooc Investment B.V. With the first joint venture, the Swabians intend to develop, manufacture and distribute the next generation of Porsche eBikes. With the second joint venture, Porsche intends to enter the micromobility market.
Porsche already attracted attention last November when the sports car manufacturer acquired a majority stake in e-bike manufacturer Greyp Bikes secured. Porsche had already held a ten per cent stake in the Croatian brand since 2018, and the acquisition of Fazua underlines its efforts to gain a firm foothold in the e-bike segment. And it shows the endeavours of large companies to at least partially free themselves from supplier dependencies - an issue that has been fuelled by the current supply problems.
The consolidation and reorganisation currently taking place in the industry speaks volumes. This also included the Deal, which was signed in October 2021 was announced: Pon Holding (at the time already owner of Focus, Cérvelo and Santa Cruz, among others) bought the Dorel Sports consortium with such illustrious brands as Cannondale, GT and Mongoose. 810 million US dollars were paid at the time.
What does this have to do with the Porsche-Fazua deal?
Well, Porsche is seeking a strategic partnership with Ponooc Investment B.V.. The venture capitalist has invested in Bikemap, the bicycle subscription provider Swapfiets and the electric scooter brand unu - AND is in turn part of Pon.
Pon Holding is still a family-run trading and service company in the Netherlands that has been the general importer for Volkswagen and Porsche since 1948 and for Audi since 1974. Incidentally, it is said that Ben Pon Sr. gave the impetus for the development of the VW Bulli with a drawing.
Porsche will also continue to work with its long-standing partner Red deer E-MTBs and, together with Storck Bicycle, develop the digital platform Cyclaer expand. Three gravel bikes are currently available here - and all of them are already equipped with Fazua motors. Just like Pon's Focus brand, which was the first bike manufacturer to opt for the Bavarian start-up.
Interview with Fabian Reuter CFO and Co-Founder FAZUA
Note: We conducted the interview in February 2022 before the current report on the Porsche takeover.
Fabian, the Porsche investment seals the end of your David versus Goliath position. What made you say "yes"?
Fabian Reuter: We are still a David compared to the immense market power of the big players - a standing that Bosch, for example, has fought really long and hard for. Over the last few years, however, we have created an independent product, established a new segment with the light e-bike and positioned ourselves well on the market. But at the same time, of course, we had to and wanted to keep growing. One financing round followed another. It is a very capital-intensive endeavour to build up a product portfolio and brand. And with every investment, everything has to get even bigger.
How did the deal come about?
We were on a planned financing round. Porsche showed an incredible will and signalled to us that they really wanted to do it. The discussions were always at eye level, they were very relaxed and incredibly interested and took a lot of time for the product. That impressed us and ultimately won us over. We had the feeling that when we do something together, it really gets better.
What will the collaboration look like?
We can quickly draw on Porsche's expertise in areas such as development or sourcing - and if you look at the electronics market, for example, you realise how crucial this is. Being able to utilise the Porsche network is a huge strategic step for us. And of course, thanks to the financial injection, we can now fully invest in the upcoming product roadmap. And we have big plans for that.
How much money has flowed in and what are Porsche's plans for Fazua?
Unfortunately, I don't communicate any figures. But Fazua is continuing on the same path as before - and we can significantly increase our expansion and innovation. I'm really looking forward to cool new products and the expansion of production. It's going to be really, really exciting and I'm sure that Fazua's positioning will work brutally. We will continue to make lightweight drive systems for the best electrified bikes of tomorrow.
When will Porsche exercise the call option and take you over completely?
(laughs) I don't know and I'm afraid Porsche won't tell you anything about that either.
Any ideas?
A vague one, perhaps. It is spoken when things are ready to be printed.
What other market movements do you expect?
In general, you can see that the bike industry is growing up - and very quickly. It's also time for it to professionalise. Developing a frame, procuring the components and assembling a bike was relatively simple. The e-component now makes it a complex vehicle with software, batteries, safety requirements, etc. - and that changes everything. Consolidation will certainly continue.
