London e-bike operator Forest has secured a further £27 million in funding, taking its total Series B round to £40m.
The investment comes at a time of significant growth for the business, which has cemented its position as a market leader in London’s shared e-bike sector – the largest in the world.
Forest, which entered London’s bike share market in 2020, has scaled its user base to 1.5m – representing 100% year-on-year growth – and now completes 2m rides per month across 18 boroughs in the capital.
The announcement follows a series of recent landmark tender wins – notably in Richmond where Forest was appointed sole operator – which means the company now operates the largest continuous operating area of any shared e-bike provider in London.
The company has invested in 2,600 parking bays and says the fresh funding will enable further investment in the city’s cycling infrastructure, as well as continued technology and app developments to drive ongoing improvements in parking compliance and safety features.
Forest is the only operator to power all its e-bikes and service vehicles with zero emissions energy. The company also offers users up to 30 free cycling minutes a day; in total, it says it has gifted 110m free cycling minutes to Londoners since 2021.
The funding round sees Forest’s e-bike manufacturer take a minority stake in the company. The strategic partnership with OKAI, a sector first, gives Forest direct input into the design and build of its fleet.
OKAI and several existing investors – B8 Venture Partners, Fen Ventures and Güil Mobility Ventures, among others – have contributed £17m in fresh equity, building on the £3m equity announced last year.
A further £10m in asset-backed finance is being made available by existing lender Fintex Capital, building on its earlier £10m facility and bringing the total available up to £20m.
“This has been a period of exceptional growth for Forest,” said Jose Eluchans, CFO of Forest and a member of the founding team.
“We’ve built one of the largest e-bike platforms in Europe by maintaining a disciplined focus on capital efficiency and sustainable operations.
“This latest investment reflects our shareholders’ confidence in our ability to scale responsibly while delivering real value to London. Our objective is that every Forest e-bike should generate more trips than any other shared bike on the street. That level of utilisation isn’t just a business metric – it’s how we justify our existence in a city with competing uses for public space.
“As a single-city operator, we’re able reinvest directly into our home city London – expanding access to cycling, supporting the shift to cleaner, smarter transport.”
Jiangtao Lu, CEO of OKAI, said: “We’re delighted to invest in Forest and become more than a supplier: we’re collaborators, investors and co-creators. We have been impressed with Forest’s rigorous approach to maintenance, servicing and the management of their e-bike fleet.
“Forest’s input into the bike design and manufacturing process, based upon what they’re seeing on the ground in London, will help set new standards for e-bike quality and performance, as well as the rider experience.”