eBike startup Lug+Carrie nabs $18 million debt deal for US plans
East Coast subscription eBike startup Lug+Carrie has secured an $18 million asset-backed debt facility for its fleet expansion across Australia and the United States
Climate tech-focused boutique financier Catalytic Impact Capital backed the non-dilutive deal for the six-year-old venture, which operates in Melbourne, Sydney and Brisbane, as well as the US west coast in the Bay Area, Los Angeles and Seattle, where it operates as Wombi.
Lug+Carrie expects estimates the funding will put more than 15,000 people on eBikes in Australia and the US by 2028.
CEO and cofounder Daniel Carr said Catalytic Impact Capital had supported the startup has it’s grown for three years.
“We chose debt financing deliberately. Over six years we’ve demonstrated that our model works year on year. We have significant assets that generate recurring subscription revenue, and it made sense to re-partner with Catalytic to fund the next stage of growth rather than dilute equity to do it,” he said.
“In car-centric cities like Sydney and Seattle, more than half of all car trips are under five kilometres, exactly the distance an eBike handles better than a car. Consumers in both countries are responding to the same forces: rising petrol prices, congestion, investment in cycling infrastructure and eBikes are that are genuinely great products. The conditions for adoption are the same.”
Industry analysis shows that in Germany 750,000 new company ebikes were leased in 2024, bringing the total leased fleet to 2.1 million and generating more than $5 billion in turnover.
While employer-led leasing schemes have driven mass adoption in Europe, the Australian and US markets markets are still in their infancy.
