India-based e-bike manufacturer TVS Motor bolsters its expansion into the European market by acquiring 75% of counterpart Swiss E-Mobility Group (SEMG), allowing the latter to include leading brands such as Norton Motorcycles and EGO movement to its product portfolio.
E-bikes are establishing themselves as the de-facto form of personal mobility in Europe due to the increased ease of usage, regulatory support, and overall perception as a sustainable form of transport. With a current penetration of approximately 15% of the total bicycle population in Europe and growing at a CAGR of about 18%, the market for the e-bicycle holds significant growth potential.
SEMG is a market-leading provider of e-mobility solutions within the DACH region, operating the largest pure-play e-bike retail chain M-way in Switzerland with close to USD 100M in revenue. The company has a prestigious Swiss mobility brands portfolio, including Cilo, Simpel, Allegro, and Zenith – Bikes. By combining its extensive physical network and e-commerce platform with two online platforms and 31 physical stores, SEMG is able to deliver a seamless and world-class customer experience.
“TVS Motor has always been committed to sustainability and has been investing in electric vehicles for over 10 years. The increasing global focus on the environment and personal well-being is rapidly accelerating demand for newer mobility solutions, and TVS Motor is investing to drive this change,” said Venu Srinivasan, chairman, TVS Motor.
The acquisition has been made in an all-cash deal through TVS Motor’s Singapore Subsidiary, TVS Motor (Singapore).
Rainer Fröhlich, founder and managing partner, CONSTELLATION CAPITAL, noted that by partnering with TVS Motor, they have found an ideal and dynamic partner for SEMG to strengthen its market leadership.
“The strategy of having a global leader like TVS as a majority shareholder not only offers untapped potential in quality assurance and procurement in the global supply chain but also lays the foundation for future expansion of the group beyond national borders,” said Fröhlich.
CONSTELLATION CAPITAL AG, one of Switzerland’s leading investment firms, is an adviser to SEMG. SEMG was incepted as a part of the CONSTELLATION V fund in 2018.
Meanwhile, Sudarshan Venu, joint managing director, TVS Motor Company, said the SEMG acquisition advances their commitment towards e-personal mobility products.
“SEMG has strong omnichannel distribution and aspirational brands, including Cilo, Simpel, and Zenith - Bikes. I’m excited to enhance the product range further and scale the company in the DACH region and beyond,” Venu said.