BOULDER, Colo. (BRAIN) — The Pro's Closet's growth during the unprecedented bike shortage this year has attracted additional funding and led to an upcoming relocation to a bigger facility.
The used bike and component e-commerce seller raised $12 million in funding led by existing investor Foundry Group and new investor Edison Partners. Ridgeline Ventures and other existing private investors also contributed. Foundry and Ridgeline also invested in 2017.
The latest round brings the total investment in The Pro's Closet to more than $27 million.
"We are extremely fortunate to have such an amazing group of investors, and the addition of Edison Partners — alongside our long-standing relationships with Foundry Group and Ridgeline — makes for a dream scenario," said The Pro's Closet CEO and founder Nick Martin. "It's an honor to welcome Edison Partners, and we value their support and knowledge as we continue to scale for the incredible opportunities before us."
With TPC experiencing more than 130% year-over-year revenue growth and expecting similar success in 2021, it's moving from a 24,000-square-foot Boulder location to a 137,000-square-foot facility in Louisville, Colorado. The former North American headquarters for Fjallraven outdoor equipment, it features 40,000 square feet of office space and 24 shipping bays.
Last year, TPC leased a warehouse space in Longmont, Colorado, that added 28,000 square feet to its operating space. Each current location has two shipping bays, and the plan is to consolidate both into the single space in Louisville.
The relocation begins in November, with some departments — such as marketing, finance, and human resources — moved in by then. The Louisville headquarters is expected to be fully operational by the beginning of the year.
To help support the transition and growth plan, Gregory Boucher recently joined the executive team as vice president of technology. Boucher has more than 18 years of experience in e-commerce product development and full-stack management and is assembling a tech team to manage the expansion phase.
With 92 employees and growing, TPC has open positions in all departments, including a vice president of operations.
"TPC is solving two meaningful industry challenges when it comes to purchasing a bike online: trust and selection," said Chris Moody, partner at Foundry Group. "The team continues to focus on providing the highest level of service to customers, and the results show this commitment is paying off. Foundry Group is really excited about this next chapter as TPC continues to scale quickly."
Started in 2006, The Pro's Closet says it acquires nearly 200 high-end used bikes submissions from individuals each day and turns over its inventory of 600-plus bikes more than two times a month. It features Certified Pre-Owned 30-Day No Questions Asked returns and frame warranties. Its inventory features road, mountain, gravel, cyclocross, triathlon, and e-bikes.
TPC has a nationwide IBD trade-in program. The Trade-Up 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 the bike shop. The program allows a shop to accept a trade-in without needing to resell the used products themselves.
TPC also has trade-up programs established with online retailers and manufacturers.
- Quality Bicycle Products works with TPC to make its trade-up used bike trade-in program available to all dealers. The joint program adds 10% to the trade-in value of bikes when the credit is used to buy one of QBP's bike brands, Surly, Salsa, Civia or All-City, from an authorized dealer.
- A trade-up 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.
- 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.
