Cowboy, the Brussels-based e-bike manufacturer, has raised more than 100 million euros to date and once enjoyed a valuation of 172 million euros. Yet the company still faces a high risk of insolvency, according to its 2024 annual report filed this week.
Losses at the 2017-founded brand continue to mount, and without fresh funding, its debt position is unsustainable. Over its nine years of existence, Cowboy has accumulated more than 123 million euros in losses.
In its filing with the Belgian National Bank, Cowboy warns that “there remains significant uncertainty that casts substantial doubt on the company’s ability to continue as a going concern.” The company concedes that it may be unable to meet its obligations if no restructuring or financing solution is found.
Management is currently negotiating with lenders on a new loan facility, a potential debt-to-equity conversion, and broader restructuring of its liabilities. A successful outcome could provide up to 12 months of additional runway. While no binding agreements have been reached, discussions are said to be progressing positively.
If investors commit, it would mark Cowboy’s sixth funding round. The company completed its Series A in 2018 with five investors. A 23 million euros Series B followed in 2020, supported by six backers. The Series C between 2021–2022 was the largest to date, bringing in 80 million dollars from nine investors. Last year, Cowboy secured another 5 million euros in a strategic round, joined by five investors. Most recently, in August, the company raised short-term bridge and turnaround financing from a single participant.
The financial headwinds are stark. In 2024, net losses widened to 21 million euros, while revenue slumped 30 percent to 24.1 million euros. Shareholder equity stands at negative 43 million euros.
Operational challenges have exacerbated the situation. Delays in deliveries of bikes and spare parts led to widespread customer complaints. In May, Cowboy also issued a large recall of its Cruiser ST frames due to safety concerns, exposing the company to millions in additional costs.
The market backdrop is not helping. After the pandemic-era boom in cycling demand, consumer appetite for new e-bikes has weakened significantly, leaving Cowboy and its peers with excess capacity and pressure on margins.
