BOULDER, Colo. (BRAIN) — The Pro's Closet announced Wednesday it raised an additional $40 million in Series B funding that will be used to grow its workforce, develop new technological customer solutions, and possibly expand into new regions.
The certified used bike and component retailer said it's considering options to establish a presence outside Colorado but did not provide specifics. This is TPC's largest round of funding. Last September, it raised $12 million and in December 2019 raised $4.5 million.
New investor The Chernin Group joined existing investors Foundry Group, Edison Partners, and Ridgeline Ventures for the latest funding. Foundry and Ridgeline also invested in 2017.
"We're extremely excited to use these funds to develop even more highly compelling experiences and services for our customers," said John Levisay, The Pro's Closet CEO. "The Pro's Closet aims to lift the entire bike industry by boosting liquidity in the marketplace. Many industries have proven that a fluid and safe aftermarket for used gear benefits and grows the entire vertical. We believe that we can advance that goal by expanding our teams and capacity to help more enthusiasts buy and sell bikes."
The announcement follows TPC reporting the doubling of first-quarter sales year-over-year. It reports revenue has more than quintupled in the past two years.
TPC is upgrading programs at its Louisville, Colorado, headquarters, including expanding curbside pick-up options. Other services, including fitting and repair, are available now through some trade-in retailer partners in other areas. The investment also allows growing its technology teams with the goal of benefiting employees and customers, and retail and manufacturing partners. Additionally, it will invest in creating a more inclusive workplace.
"We have seen The Pro's Closet's explosive growth over the last several years and are very excited to invest in their expanding business," said Luke Beatty of The Chernin Group. "In The Pro's Closet, we see a revolutionary approach to the bike-buying and selling process, one that is consumer-centric and will be able to help more people access cycling products with greater ease and value than any other option. We're grateful to help their business grow and expand."
Started in 2006 as an eBay store, TPC features Certified Pre-Owned 30-Day No Questions Asked returns and frame warranties. Its inventory features road, mountain, gravel, cyclocross, triathlon, and e-bikes, and sells throughout the U.S. and Canada.
Last September, TPC announced plans to move from its 24,000-square-foot Boulder location to the 137,000-square-foot facility in Louisville, and the transition was completed in January. The former North American headquarters for Fjallraven outdoor equipment, the Louisville site features 40,000 square feet of office space and 24 shipping bays.
TPC has a nationwide IBD trade-in program. The program allows customers to submit their bicycles for valuation by taking two photos. TPC then offers a guaranteed trade-in price that can be redeemed at a participating bike shop. The program allows shops to accept a trade-in without needing to resell the used products themselves.
A trade-in program with online retailer Competitive Cyclist enables Competitive Cyclist customers to receive a rebate on a new bike purchase when they trade in a bike to TPC. Giant Bicycles' and Liv Cycling's TradeUp program was announced last week in which an online voucher is given to the customer that they can apply through Giant's website as a click-n-collect option or redeem at a Giant authorized TradeUp dealer.
Zipp has a program that lets consumers trade in their used Zipp wheels for retail store credit they can put toward the purchase of a new set of Zipp wheels. TPC provides stores with a trade-in value to offer the customer. If the customer opts for the trade-in, a prepaid shipping label will be provided for the dealer to send the wheels to TPC, where they will be inspected and sold. TPC, not Zipp, will reimburse the dealer for the store credit offered.
