19 MAY 2022, LONDON: Racing to disrupt both access and sustainability in the cycling industry, children’s bicycle subscription service, Cycling clubafter closing it prepares for national and European expansion £ 16.75 million in new investments.
Already the largest bicycle subscription program in the UK, Bike Club, chaired by Mike Balfour OBE, founder of Fitness First, has now received this cash injection as part of a Series B funding round. is Circular capitala private equity firm specializing in circular economy activities – challenging the take-do-dispose approach to production and consumption, while encouraging the elimination of waste, together with existing investors Capital Code.
Raising £ 13.25 million to date, the bicycle subscription success story, which solves the pain of having to buy new, quality children’s bikes every 12-18 months as they grow up, has the ambition to ride in Germany and France within the next 12-24 months.
Founded in 2016 by James Symes and Alexandra Rico-Lloyd, Cycling club is revolutionizing the bicycle industry by offering families the opportunity to subscribe online to new or refurbished bicycles and scooters and exchange them as their child grows.
Outpacing the fleets of Lime, Uber and Santander Cycles, the easy-to-manage monthly subscription program – which costs between £ 4.49 and £ 15.99 per month – currently has a network of 40,000 quality bikes and, with the new investment , puts it on track to rise to 220,000 over the next three years. Subscribers are now set to more than double to 80,000 in the next year.
Cycling club founder and father of three, James, was previously a special adviser to the president of KPMG, said, “The pandemic, coupled with the growing trend in health and wellness, has spurred a significant increase in family cycling and demand continues to be at the highest level in decades. Bike Club has a mission to stop cycling in the family, which means you will never have to buy a kid’s bike again. We have seen traction all over the country with several families going there. use to go outdoors and enjoy a healthier, more active lifestyle.
Taking your family on a bicycle is a huge hassle and often quite wasteful. With our exclusive subscriptions we eliminate the pain of buying the right quality bike and make sure that your child is given the best sustainable gift. Children grow up fast and at different times, there is no point in spending an extra £ 300 on a bike, joining the Bike Club is the solution.
We are focusing on family cycling and the junior market, but there is also an opportunity to help parents and other adults get on their bikes. Membership makes a lot of sense when you really consider the hassle of ownership.
The world is moving towards monthly payment, subscription and fractional ownership. We are seeing a lot of home essentials and discretionary items switch to this model, most cars are now bought with some sort of monthly payment, you pay your mortgage and rent monthly, you have a subscription to stream TV, it makes sense that you’ll be paying for kids’ bikes monthly, and they’re not worth owning in the long run, considering how often they need to be replaced with the next frame size.
Our research tells us that if you put children on a quality bike of the right size, they are much more likely to start and continue pedaling during their formative years. Bike Club was created to make the process of updating bicycles easier and hassle-free for parents, while offering children the opportunity to enjoy all the benefits of cycling all year round.
Children grow up fast, doing this year’s bike, next year’s headache. Not to mention the associated costs and the impact on the planet of waste. To make sure they experience the benefits of riding the perfect size wheels, a parent should purchase eight different bikes before their child turns 12.
Biking is one of the best ways for children to get active, gain confidence and develop vital skills that will benefit them throughout their lives. However, bicycles can be an expensive burden for both households and the environment, and the production of just one bicycle results in 96 CO2 * (kg) greenhouse gas emissions.
And with around 12.5 million bicycles unused in the UK alone, there are millions of sheds and garages around the world that have become useless graveyards for oversized bikes.
If you are concerned about sustainability and like the idea of subscriptions or if you don’t want the upfront costs of a quality bike, but really want your child to ride a light, well-designed bike, they will find it fun and easy to ride; or you simply don’t have the space to store bikes that are too big for younger siblings, the Bike Club subscription model offers families a more sustainable and affordable way to take the kids on their bikes.
Around 900,000 * children’s bicycles are sold annually in the UK with an opportunity of € 4.3 billion in Europe. The cycling subscription service on the go is on track to generate £ 5.8 million in revenue this year which will rise to £ 11 million next year with a current business valuation of £ 45 / $ 57 million // 53 million euros. The fastest growing category of the Bike Club is First Pedal (ages 3–6) with a 76% increase in 2021 compared to 2020.
Customers can choose from a selection of well-known quality bicycle brands including Frog, Forme, Strider, Woom, Puky, Squish and Isla.
David Mowat, Partner of Circularity Capital, a specialist firm that invests in growing companies in the circular economy, said:
“As society faces climate change, we should work together to consume better, which means we should rent better things and renovate them. This is exactly the option Bike Club offers tens of thousands of families across the UK.
The circular economy of the Bike Club means that fewer bicycles need to be produced every year. Each of their bikes saves 336kg of CO2 compared to a proprietary bike. So far, their fleet has saved 1,174 tons of CO2 compared to ownership “
Jamie Lawson-Brown, co-founder of Codex Capital and a member of the Board of Bike Club, said:
“Codex Capital and its co-investors, including Brett Palos Investments, first invested in Bike Club during the summer of 2020, a difficult time for all companies being at the height of the first C-19 block.
We have worked closely with management, including managing global supply chain disruption, and today we are a much stronger and very well capitalized company. Bike Club’s simple and affordable model gives customers the flexibility to make the right choices for their children and their wallets, and the business is perfectly positioned given consumers’ growing attention to the environment coupled with financial headwinds below. form of fiscal tightening, rising energy prices and inflation.
We look forward to working closely with Circularity Capital and Management to build the business during its next phase of exponential growth. “
About Bike Club Bike Club is the UK’s largest bike subscription service providing premium quality children’s bikes for children aged 0-14.
Founded in 2016 by James Symes and Alexandra Rico-Lloyd, Bike Club is revolutionizing the children’s bicycle market with its sustainable, flexible and affordable service. Once you join the Bike Club, bicycles and scooters are delivered directly to customers’ homes and can be changed at any time as the child grows.
In November 2021, Bike Club partnered with the John Lewis Partnership to provide the retailer’s first children’s bicycle subscription offer.
Bike Club is advised by Houlihan Lokey (investments) and John Finnemore and Michael Cattell of CMS (legal)
Bike Club secures £ 16.75 million investment in Serie B led by Circularity Capital – UK technology investment news
Source link Bike Club secures £ 16.75 million investment in Serie B led by Circularity Capital – UK technology investment news