Raine Business Update
After reading this business update, see our Info & FAQ page here
for an FAQ and update in more detail.
Dear Raine community,
We have an update that we thought we would not have to do.
We have received a cost increase on the weekend of several hundreds of thousands of dollars from the overseas supply chain doing our build.
This is a huge change that blows us out of the water on cost and supply. We have worked all week with advisors, team and investors to try and solve it.
A significant amount of the increase is material and parts. From metals used in electric motors and all our mechanical parts, and another large increase added of 3-5x pricing last week from the current scarcity of microchips and electronic components coming from the global semiconductor shortage.
On top of that, freight costs are trending at 2.5x the previous freight price index.
Source: https://tradingeconomics.com/ DHL
We had a recent and smaller increase on this that we had a buffer to cover.
This supply and cost change is something we cannot overcome today.
A huge amount of dedication and solving has gone into this from our team. It has been an intense and thorough period recently while we all push and problem-solve to win it.
Large companies overcome some of this with their buying power, contracts and cash.
We must hibernate and come back online when the market conditions work. We are reducing all expenses until this time has passed.
If or when the conditions return to deliver, we will do so. We know that our ongoing business model is successful, we plan for this to be a pause, not an end.
For anyone that pre-ordered off our website - we are refunding, that process has already commenced.
Kickstarter project backers - sadly we can't send backer funds back - they have been used in the project, in our investment in IP, stock and materials, parts & tooling. However when we relaunch, we will honour the reward and provide a product then.
To investors in our recent round through Birchal, I have requested that their team pause and return all funds to investors.
We know this news is not what anyone wants to hear. But we very much feel that this is the right thing to do. And apologise for any inconvenience or frustration.
Thank you so much for all your support. We will keep working on this in the background and look forward to seeing you on the other side.
All the best,