Scorpio Electric’s losses climb 15% amid negligible revenue in FYE 2023

CEO Joshua Goh (left) with Melvin Goh, founder-adviser at Scorpio / Photo credit: Scorpio Electric

Scorpio Electric, a Singapore-based maker of electric motorcycles, increased its losses by over 15% to S$3.3 million (US$2.4 million) in the financial year ended (FYE) March 2023, according to the company’s filings.

The filings, which can be seen on VentureCap Insights, also showed that Scorpio eked out a revenue of just US$1,080, which is a 44% decline from FYE 2022 where it stood at about US$1,915.

This is because despite starting operations in 2017, the company hasn’t introduced its e-bike to the market yet, as Tech in Asia previously reported. Scorpio, however, does sell merchandise on its site, specifically t-shirts.

But according to a spokesperson, the company remains on track for the global launch of its flagship product, the Scorpio Electric X1. It will be rolled out at the EICMA or the Milan Motorcycle Show, which begins on November 7, as the company aims to target the European market.

Scorpio has been focusing on the development and “thorough testing of pre-production prototype units” over the past year, the spokesperson says. “We’ve significantly expanded our team in Singapore to ensure we have the talent and expertise needed for a successful global launch.”

The company reported a valuation of US$150 million in January after raising US$6.75 million in funding from undisclosed investors. It planned to use the funds to develop the Scorpio Electric X1.

Julian Legazpi, chief commercial officer at Scorpio, said the number of pre-orders for its e-bike, which is priced at US$9,800, had been “robust.” On its website, the company appears to be actively seeking individuals to participate in test rides for the product, which is slated for deliveries in 2024, the company says.

Scorpio also noted that it has made sizable investments into “research and development, proprietary technology, and all essential facets of product development.”

It has also partnered with distributors in key markets including Europe and teamed up with Chinese manufacturer BYD to help with assembly and technology.

See also: The brow-raising $150m valuation of SGX-listed firm’s EV brand

But given how Scorpio has not even begun selling its e-bikes yet, its high valuation has raised eyebrows. Regional players like Ion Mobility and Dat Bike, which already have products in the market, are valued much lower. Moreover, Scorpio’s valuation announcement came amid a tech winter.

Industry sources, however, argued that the company’s value should be seen in the context of its Singapore-listed parent, EuroSports Global, which had a revenue of US$40.57 million in the financial year of 2022.

EuroSports said it is the sole authorized dealer for Lamborghini in Singapore and Indonesia. Apart from being a distributor of ultra-luxury cars, it also offers after-sales services on these automobiles.