Spanish EV startup Velca rides off with €5.3 million in Series A to help fuel expansion

- December 1, 2023

In a transaction supervised by the law firm On Tax, the Spanish two-wheeler 100% electric vehicles (motorcycles and bikes) manufacturer Velca has raised €5.3 million in a Series A round.

According to a press release, this Series A will enable it to expand the company into other countries and launch new models. Currently, the startup has 13 models of electric vehicles, and more than 3,000 are already on the road.

“We expect to close this year with 90% growth in a context in which electric motorcycle registrations have fallen by 30%,” said Emilio Froján, CEO and co-founder of Velca. “We have always wanted to be the leading brand of electric motorcycles in Europe. Currently, we are the second Spanish manufacturer in the private channel and the first Spanish manufacturer of mopeds. We are ready to leap to Europe, always faithful to our Spanish roots, our customers, and our distribution network,” he concluded.

The round comprises a capital increase of 3.5 million euros by several investment funds, a participatory loan from Enisa of 600,000 euros, and bank financing of 1.2 million euros from Santander Galicia and Sabadell Galicia. Among the investment funds that led the round, Sherry Ventures has contributed 600,000 euros; Noso Capital, a Galician company, has invested 500,000 euros; and BeHappy Investments also participated with 500,000 euros.

Emilio Froján, CEO and co-founder of Velca

Sherry Ventures manager, Tomás Pérez, emphasizes that “decarbonization is one of our main investment axes and Velca is one of the European companies with the greatest potential to decarbonize urban environments.”

Undoubtedly, this round will be of great importance for Velca’s electric vehicles to reach the international market. Antonio Romero-Haupold, manager of the Noso Capital fund, says, “We invested in Velca because of the leadership shown by Emilio and his team. Our objective is to help the company with production, sales and its IPO.”

“Velca meets all the characteristics we look for in our projects; a sustainable purpose, a very promising business projection, and a top-level human team”, said Miguel Ángel Rodríguez, President of BeHappy Investments.

Recently, Velca participated in the Milan EICMA, one of the most important motorcycle sector events in Europe, to advance in its expansion into three key markets in the region: Italy, France, and Germany.