Over just three years, Bike24 became a global e-commerce player in cycling and fitness with Riverside’s investment and support. The transformation was achieved through a significant investment and Riverside’s knowhow in developing a mobile version of the web site and in warehouse automation, which enabled faster shipping times and more efficient inventory management. This, combined with a professionalisation of Bike24’s systems, a strengthened management team and capital improvements, ensured the business almost doubled in size under Riverside’s ownership. The success of the deal was underpinned by a strong partnership between the private equity investor and an outstanding and entrepreneurial leadership team.
It has been a hugely successful partnership with Riverside, who helped us bring our business to the next level thanks to bold investments, strengthening our team and professionalisation of our organisation.
Andrés Martin-Birner Co-Founder and CEO, Bike24
What did the business need?
- Better website functionality and Google search results
- Improved warehousing and inventory
- More professional financial reporting
How did private equity backing create lasting value?
- Invested significant capital to automate warehouse, expediting shipping and enhancing inventory management.
- Hired logistics expert with Amazon experience to further improve warehousing and infrastructure processes
- Provided support through Riverside operating partner with prior online consumer goods experience, who led improvement efforts
- Developed a better and more mobile-friendly website
- Strengthened management team through addition of new, highly experienced CFO
What outcomes did private equity investment achieve?
- Grew sales annual by 22.7% during three-year ownership
- Improved EBITDA by 57%
- Grew in core markets while expanding internationally
- Added 100 employees
- Attracted buyer that created the world’s largest online bicycling retailer