Swedish Electric Motorcycle Manufacturer CAKE Files For Bankruptcy

Swedish manufacturer, Cake, known for making high-design, utilitarian, off-road motorcycles has filed for bankruptcy.

Although exact details as to whether Cake has filed for bankruptcy protection or insolvency are still not clear. It is confirmed that the startup was in the middle of a funding round when an investor’s withdrawal pushed the company over the edge. 

It should be noted here that Cake was supposed to enter India. The brand had already signed a partnership with Pepfuels, an ONGC-funded entity, under the brand name CollarEV, last year. The first stage of the market entry campaign had already been initiated and bikes were being shipped to the country. And the bikes were even shown at the Auto Expo 2023. 

As for their bankruptcy, reports state that Cake was in the middle of round C funding that would help the company see through higher volume production by establishing manufacturing facilities in Europe, North America, and Asia. However, off late the company was struggling with several issues. 

For starters in November 2023, Cake issued a recall for one of its models over a steering column defect. Shortly after, its flagship e-motorcycle Kalk was recalled after a unit caught fire in a South Korean dealership. These challenges further contributed to its struggles. Couple this with the global financial climate, Cake was struggling to even make salary payments for over a month. 

Cake is not the only new electric motorcycle manufacturer to struggle. Several companies off late in the e-mobility world have either shut shop or have filed for bankruptcy. Interestingly, the demise of new upcoming e-mobility companies comes at a time when established motorcycle manufacturers have started to enter the electric segment, like Kawasaki for example who recently launched the Z e1 and the Ninja e1 electric models. 

As for Cake’s entry into India, it remains to be seen what happens now. As India aims for a cleaner and greener future, the availability of high-spec, electric off-road motorcycles will certainly amp up the EV space. But with the firm running on the brink of getting shutdown, the future at the moment is grim.