Unlocking growth by providing the capital to meet demand

At a glance

Maven provided debt funding to Eskuta through the Midlands Engine Investment Fund, helping the business scale production to fulfil growing customer demand and capitalise on significant opportunities within the rapidly expanding e-mobility sector. Funding enabled Eskuta to increase its inventory levels needed to secure additional contracts and expand into new markets. The result was a fourfold increase in turnover, helping to establish the company as a leading supplier of electric delivery vehicles in the UK.

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Capitalising on structural growth trends

Eskuta designs and manufactures proprietary electric bikes and scooters for both commercial and leisure markets. The business operates at the intersection of two powerful growth trends: the transition towards sustainable transport solutions and the rapid growth of last-mile delivery services.

Established in 2015, Eskuta developed a strong position within the delivery sector, securing contracts with major brands including Just Eat, Domino's and Pizza Hut. The business also became Just Eat's preferred supplier of eCargo bikes to its network of more than 28,000 UK restaurant partners.

As demand for delivery services increased, Eskuta's specialist electric vehicles became increasingly attractive to businesses seeking cost-effective and environmentally sustainable transport solutions.

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Overcoming the working capital challenge

Eskuta faced a challenge common to many high-growth businesses. Despite strong customer demand and a growing order book, the company needed additional working capital to purchase inventory and fulfil larger contracts, however traditional lending options were proving difficult to access.

"Invariably with most start-up businesses they have created an innovative product or service with a good opportunity for market traction,” explains Ian O'Connor, Managing Director of Eskuta, “This can't be exploited to its full potential if funding is not available to invest in infrastructure or even just stock to facilitate orders."

The challenge facing Eskuta was not a lack of demand. Rather, it was ensuring the business had sufficient capital available to support growth and fulfil increasing customer requirements.

"When you look in the market for funding, the landscape is usually dominated by high-street lenders or finance brokers," says Ian. "If you're a relatively new business, both are challenging, especially if you do not have assets available as security."

Why Maven backed the business

For Maven, Eskuta represented an opportunity to back an ambitious management team operating at the intersection of two powerful structural growth trends: electrification and the continued expansion of last-mile delivery services.

The business had already demonstrated strong product-market fit, secured relationships with leading industry participants and established a clear competitive position within a rapidly growing market. The key challenge was ensuring management had access to the capital required to convert growing demand into sustainable growth.

Importantly, Maven's investment process focused on understanding the business, its leadership team and the opportunity ahead rather than relying solely on traditional lending criteria.

"It reminded me of the old-school way when trying to secure a loan with your local business bank," says Ian. "If the business plan is good enough, your financials are robust and realistic, and there is faith in you as an individual, this was the main criteria."

"Maven came out to see us, looked at the operation, met with staff and gained a detailed understanding of the business. That gave us confidence they genuinely believed in both the opportunity and the team behind it. It felt much more like a partnership than a straightforward lending transaction."

Funding growth and fulfilling demand

Maven provided critical funding that enabled Eskuta to increase stock levels and fulfil growing customer demand.

"The funding allowed us to place forward orders with our Chinese factory," explains Ian. "We did not have a credit facility and until that point the business was using its own cash to fund purchases."

The funding removed a key constraint on growth and allowed management to focus on winning and servicing customers rather than managing inventory shortages.

"Maven helped us to bridge this gap, enabling the business to drive forward with more sales knowing that we could now deliver on those contracts in a timely manner," says Ian.

As the business continued to expand, Maven was able to provide additional funding support, giving management further flexibility to capitalise on new opportunities and maintain momentum.

"As the business continued to grow, Maven was able to provide additional funding support which ensured we remained well positioned to capture future opportunities and continue building on our momentum," Ian adds.

Accelerating commercial momentum

With working capital constraints addressed, Eskuta was able to expand significantly.

The business secured additional contracts with major delivery providers and food service brands, while also expanding its distribution network and entering new channels.

"The new funding has allowed us to grow the business exponentially and enter new markets via a UK distributor which has positioned Eskuta in retailers such as Harrods and Selfridges," says Ian.

Since receiving funding, turnover has increased fourfold and the business has strengthened its position within the rapidly growing eCargo market.

"Maven has helped solidify our position as the market leader in eCargo bikes in the UK," Ian adds. "Electrification and micro-mobility is a market sector that is due to grow exponentially in the coming years and Maven saw this potential. Their funding has played a vital part in allowing the business to prosper."

Supporting the next stage of growth

The partnership has continued as Eskuta has expanded both geographically and commercially.

Reflecting on the company's progress, Sajid Sabir, Investment Manager at Maven, says: "Eskuta had already demonstrated strong demand for its products when we first became involved. Our role was to provide the capital required to help management scale the business and capitalise on that opportunity."

"The progress achieved since then reflects both the strength of the market and the capability of the management team. We are delighted to have supported the business through this phase of growth and look forward to continuing to work with Ian and his team as they pursue further opportunities in the UK and international markets."

With strong market drivers, growing customer adoption and increasing demand for sustainable delivery solutions, Eskuta is well positioned to continue benefiting from the ongoing shift towards electrification and last-mile mobility.