EU Investment Bank Grants EUR 12 Million Loan to E-Bike Drive Train Supplier Fazua
MUNICH, Germany – The European Investment Bank (EIB) granted a EUR 12 million loan to German e-bike drivetrain system supplier Fazua GmbH. Based in Ottobrunn near Munich, Germany, the rapidly growing company received this loan as part of the multi-billion-euro Investment Plan for Europe, also known as the ‘Juncker Plan’.
The funds are being made available as a long-term venture debt product by the European Investment Bank (EIB). According to the EIB, “this product addresses the unique funding needs of fast-growing innovative companies.” The European Fund for Strategic Investments (EFSI) guarantees the loan. EFSI is a core component of the Investment Plan for Europe, a joined EIB and European Commission project to boost the competitiveness of the European economy.
Fazua intends to allocate the money to the expansion of the company and for research and development. The company expanded very rapidly in the past years already. Beginning of 2017 Fazua employed twelve people. The introducing of the light weight and compact mid motor to the market in combination with the start of serial production in Germany gained widespread media attention. A lot has changed since then for Fazua and they had to expand quickly to 85 people today. In April 2018 they moved from their tiny Munich office and production site to a former EADS rocket science building nearby Ottobrunn.
Since entering the market, Fazua has built up a customer base that now includes more than 35 European manufacturers offering bicycles in the e-mountain bike, e-urban and e-gravel segments. In the category e-racing Fazua holds a leading market position.
‘Closing the market gap for highly innovative SMEs’
“With our higher-risk financing operation for Fazua, we are closing a gap in the market for highly innovative SMEs, which need long-term growth capital without the risk of dilution. Fazua can now fully concentrate on its business growth and the development of follow-up products”, noted Ambroise Fayolle, EIB Vice-President responsible for operations in Germany and EFSI. “The project is an excellent example of the added value that the Investment Plan for Europe offers young, innovative companies. Our cooperation with Fazua, made possible by the Juncker Plan, shows how Europe can promote innovation and competitiveness.”
European Commission Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union, said: “By guaranteeing the EIB’s financing to Fazua, the Juncker Plan once again shows its support for an innovative, ambitious, EU-based startup keen to scale up and develop new products to bring to market. Fazua’s ongoing success translates into more jobs and sustained growth for the local economy, which is the core focus of the Juncker Commission.”
‘Expansion of our product range’
Fazua-CEO Fabian Reuter also welcomes the financing agreement: “The capital provided by the EIB is the ideal financing instrument for us in our current business phase. In addition to the ‘Evation’ drive system, which has already been very successfully launched on the market, we can now invest in the expansion of our product range.”
Fabian Reuter also stressed the importance of the production and development site in Ottobrunn near Munich: “It is crucial for us to maintain our successful business model with the highest quality standards, our own production in Germany together with reliable partners, most of whom also come from Europe.”