Nuneaton based E-cargo delivery business Eskuta has received a total of £1m worth of funding from The Midlands Engine Investment Fund (MEIF), West Mids Debt Finance Fund, managed by Maven Capital Partners, and backed by the Recovery Loan Scheme (RLS).
The business, which has headquarters in Nuneaton, had already received funding from MEIF to support the business’s ambitious growth plans, but has now received a second funding round of £500,000, bringing the total to £1m.
The capital injection will support several growth opportunities for the business as it seeks to expand into new markets and enhance its current product offering with international distributors who supply products to major retailers in Europe, North America and the Middle East. The business has also created six new jobs since receiving its first tranche of funding in 2019.
Eskuta’s core offering focuses on the assembly and supply of a range of electrical e-Cargo bikes and scooters for both B2B and consumer markets. This business is the UK’s largest eCargo bike brand and named the ‘official e-bike supplier’ to established fast food outlets such as Dominos and Pizza Hut, accompanied by partnerships with more than 28,000 UK restaurants via its key partner contract with JustEat. Eskuta is now entering into new markets through key B2B partnerships and supporting a growing list of retailers such as Harrods, Selfridges, Virgin Mega stores and Dublin’s flagship Apple store.
The business is helping companies and individuals adopt single use electric transportation, which will contribute to the reduction of carbon emissions. The number of people living in urban areas in England is forecast to rise by 4.7 million by 2041. As cities and towns become increasingly crowded, it’s becoming increasingly essential to rethink our relationship with vehicles to avoid exacerbating air pollution.
The business is led by Ian O’Connor, Managing Director and Founder, who is an experienced entrepreneur and built and sold several brand-based businesses. Jake O’Connor, Ian’s son leads the sales teams at Eskuta. Jake has held previous sales / business development roles at CY Executive Resourcing, Listers Toyota and the deVere Group.
Ian said: “Maven has helped Eskuta bridge the stock funding gap that was a continual problem for the business, and which hindered any prospect of Eskuta expanding and fulfilling its potential. The funding has allowed us to grow the business exponentially in the B2B sector.”
Demetri Theofanou, Investment Manager for Maven, added: “We are delighted to further support Eskuta as they embark on new growth initiatives across the UK and internationally, having successfully navigated through the past twelve months of business challenges. Eskuta has positioned itself well to benefit from the increasing proliferation of alternative technologies in the last mile delivery space as well as changing consumer habits.”
Mark Wilcockson at British Business Bank said: “The MEIF is committed to championing businesses that help support the region’s drive for a net-zero economy. We’re delighted to see that MEIF funding will help this business increase its rollout of low-carbon transport options across the food delivery industry, as well as supporting further job creation in the region.”
Sarah Windrum, Chair of CWLEP, said: “Eskuta is perfectly positioned to capitalise on the rapidly expanding commercial and consumer market for electric bikes. This funding marks further investment to establish Coventry and Warwickshire as a leader in the electrification revolution and emphasises that we are well placed to support innovative businesses.”