Although The Pro’s Closet has been around since 2006, the company hit its stride within the past two years and is taking investors with it on its journey.
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The Boulder, Colorado-based company touts itself as “the largest and most trusted brand in pre-owned cycling,” specializing in premium bicycles with an average price tag of $3,200, TPC founder and CEO Nick Martin told Crunchbase News.
“We are the biggest bike shop you’ve never heard of, and we are changing the way the world buys and sells bikes,” he said.
TPC raised $12 million in strategic funding, led by Foundry Group and Edison Partners, to give it a total investment to date of more than $27 million. Ridgeline Ventures and existing private investors also joined the round.
Ryan Ziegler, an avid cycler and general partner at Edison Partners, said in an interview that he learned about TPC when he was in the market for a new bicycle.
“They solved a wonderful issue: offering bikes at a lower price with a brand promise,” Ziegler added. “Pre-owned merchandise is doing well in multiple industries, such as the fashion industry. Nick has built massive scalability to profit with little capital, so we saw this as an interesting opportunity.”
Martin called the raise a Series A-2, having raised funds in both 2016 and 2017. Prior to the most recent raise, the company expanded into a second warehouse and was focused on marketing, brand awareness and building its inventory.
The company has seen more than 130 percent year over year in topline revenue growth and expects similar growth in 2021, Martin said. In addition, it is selling through its inventory on average every 13 days.
As a result, the new funding will help TPC move its headquarters and operations to a 137,000-square-foot facility in Louisville, Colorado, that will give the company three times the capacity it has currently and a unique advantage in the supply chain, Martin said. It is also investing in its team, technology development and building out a new website.
“We are exploring the logistical side of our business,” he added. “One of the barriers is shipping a bike, so we are looking at having a mobile mechanic who will pick it up and ship it. We are also considering creating hubs. We also have our eyes on Europe, but we are not going there until we nail our core business in the U.S.”
Illustration: Li-Anne Dias