Startup Founder Who Created an Electric Two-Wheeler Subscription Model, Turning Passion into Profession… Investors Are Also Impressed

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A startup has launched an initiative to expand its ecosystem by lowering the biggest entry barrier for starting as a delivery rider: the cost of purchasing an electric two-wheeler. By reducing this barrier, it aims to increase rider inflow and take on all aspects of the ecosystem, including insurance, maintenance, and consumables.

This aligns with the government’s direction. Previously, the government announced a target to raise the electrification rate of delivery two-wheelers to over 60% by 2035 in relation to its '2030 National Determined Contribution' (NDC).

Cycloid is a startup founded in 2023 by Kwon Jun-il (CEO), operating a subscription service called 'Badream' for electric two-wheelers tailored for delivery riders. Kwon (CEO) is a self-proclaimed 'engineer-turned-bike enthusiast (maniac)' who worked at Hyundai Heavy Industries for 15 years and has over 300 units of two-wheeler maintenance experience, even running a two-wheeler maintenance blog. Kwon (CEO)'s deep understanding of two-wheeler maintenance mechanisms became the foundation for building the 'Badream' platform.

Badream is characterized by its ability to instantly check rental fees and receive an electric two-wheeler the day after application. Additionally, it offers a subscription model that integrates all equipment needed for delivery, insurance, maintenance, and consumable replacements, enhancing convenience.

Unlike the typical 5 million to 8 million won required upfront for purchasing a two-wheeler, signing up for insurance, and equipping delivery gear when starting as a delivery rider, users can now access an electric two-wheeler for just tens of thousands of won per month. For delivery riders, this means they can work without worrying about initial costs, regardless of their credit status.

The key difference from existing rental services is that anyone can receive and use an electric two-wheeler starting the day after application, regardless of credit score. Previously, low credit scores made it difficult to access rentals, and delivery took 2–3 weeks. Cycloid has also automated applications for electric two-wheeler rental subsidies, which were previously complicated and hard to obtain, reducing users' financial burden.

Furthermore, the company has digitized the entire vehicle usage process for delivery riders by integrating new vehicle purchases, automatic subsidy applications, financial linkages, vehicle management, and maintenance services into a single platform. Using this system, engines can be remotely disabled, and vehicles can be immediately recovered using location data. Thanks to this process, Cycloid manages its delinquency rate at under 5% without credit checks, significantly lower than the industry average.

Kwon Jun-il, CEO of Cycloid, stated, "Our goal is to lower the entry barrier for delivery riders and create a market where anyone can work," adding, "We aim to help them achieve economic independence."

Beyond its subscription service, Cycloid has additional business models. Last year, it partnered with Woowa Brothers, the operator of South Korea's largest delivery platform 'Baemin', to supply and validate 100 LED delivery boxes for advertising purposes. The LED delivery box is a service that displays advertisements on delivery containers, similar to bus or taxi ads. This business is planned to expand to 1,000 units this year.

Recognizing its business potential, Cycloid recently secured a 5 million won Pre-Series A investment from AXE Ventures, an accelerator (AC).

Han Jin-woo, Senior Investment Officer at AXE Ventures, who decided on this investment, explained, "The platform's strong collaborative nature and alignment with the government's policy direction to transition internal combustion engine two-wheelers to electric models were key investment points. We believe it can become a standard service in the delivery rider market."

Cycloid plans to use the investment funds for expanding its electric two-wheeler fleet and enhancing its platform. To further scale, the company is shifting its business model from B2C (consumer-to-consumer) to B2B (business-to-business) starting this year. It is also exploring a plan to provide '0 Won Bikes'—electric two-wheelers with no purchase cost—to riders through direct contracts with delivery agencies.

The company plans to increase its electric two-wheeler fleet from 250 units last year to 1,200 units this year. It also aims to expand its 'Badream Care Shop' brand, which handles maintenance and support, to 50 locations nationwide.

Kwon Jun-il (CEO) said, "We will do our best to promote the electrification of two-wheelers in Korea," adding, "Given the global momentum toward electrification, we are also pursuing overseas expansion."

[MoneyToday Startup Media Platform Unicorn Factory]