At the end of January, Porsche Fazua joined the company. The Stuttgart-based company secured 20 per cent of the shares in Fazua GmbH. There is also an option to purchase further shares, which would allow Porsche to take over Fazua completely.
The manufacturer and pioneer of lightweight, compact drive technologies was founded in 2013. Today, Fazua employs more than 100 people in Ottobrunn near Munich. Porsche's investment is intended to enable the company to increase its innovative strength and further accelerate drive development.
More than 40 bike brands now rely on the Drives from Fazua. The innovative and lightweight drive system is fully integrated into the down tube and can be removed and replaced without tools. This turns a pedelec into a normal bike in no time at all.
With this step, Porsche is consistently driving forward its e-mobility strategy. Almost 40 per cent of Porsche vehicles delivered in Europe in 2021 were already electrified - i.e. plug-in hybrids or fully electric models. The Stuttgart-based sports car manufacturer now wants to make greater use of this expertise in the attractive and rapidly growing e-bike market.
Porsche wants to gain a foothold in the e-bike segment
Porsche already attracted attention last November when the sports car manufacturer secured a majority stake in e-bike manufacturer Greyp Bikes. Porsche had already held a 10% stake in the Croatian brand since 2018, and the investment in 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 included the deal that was announced in October 2021: Pon Holding (already the owner of Focus, Cérvelo and Santa Cruz, among others, at the time) bought the Dorel Sports consortium with such illustrious brands as Cannondale, GT and Mongoose. 810 million US dollars were paid at the time.
So 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).
Co-operations with Rotwild and Storck
Two joint ventures focussing on electromobility are planned between Ponooc and Porsche - one will concentrate on the development and sale of Porsche eBikes, the second on technological solutions in the field of micromobility. Porsche will also continue to produce e-MTBs with its long-standing partner Rotwild and expand the digital platform Cyklaer together with Storck Bicycle. Three gravel bikes are currently available here - and all of them are already equipped with Fazua motors. Just like the Pons brand Focus, which was the first bike manufacturer to rely on the Bavarian start-up.
Interview with Fabian Reuter CFO and Co-Founder Fazua
Fabian, the Porsche investment seals the end of your David versus Goliath position. What made you say "yes"?
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 eBike 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 and 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.
