Bike24

Country Germany
Region Sachsen
Investor The Riverside Company

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

22.7%

annual sales growth over three years

100

jobs created

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