The Pro’s Closet raises USD40m in Series B funding
The Pro’s Closet, a destination for certified pre-owned bikes, e-bikes, and components, has closed a USD40 million Series B funding round led by The Chernin Group with participation from existing investors Foundry Group, Edison Partners, and Ridgeline.
This funding announcement follows 2021 Q1 sales that doubled from 2020. The Pro’s Closet’s revenue has more than quintupled, and the company expects to double in size again in 2021
This new round of investment will cement The Pro’s Closet’s position as the only scaled marketplace that works with every bike brand in the world. The funds will also allow the company to grow operations and technology teams with the goal of implementing innovative solutions and processes to benefit employees and customers, as well as retail and manufacturing partners. The Pro’s Closet will expand its teams of bike experts building its content and community operations. The Series B investment will also facilitate physical expansion to new markets, and help to create an inclusive workplace community for team members who are passionate about providing the best possible experience to bicycle buyers and sellers of all kinds.
“We’re extremely excited to use these funds to develop even more highly compelling experiences and services for our customers,” says The Pro’s Closet CEO John Levisay. “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.”
As The Pro’s Closet expands, it will focus on developing services centred at its new, state-of-the-art facility in Louisville, Colorado. Soon, more consumers will be able to take advantage of pick up, delivery, fitting, and repair services in new markets, while upgraded programs like a White Glove concierge experience and expanded kerb-side options for drop-off and pick-up will initially roll out in Colorado.
“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,” says 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.”
Since first launching as an eBay store in 2006, The Pro’s Closet has become the fastest growing eCommerce business in the bike industry. Industry-first assurances like The Pro’s Closet’s 141-point Certified Pre-Owned process, a 30-day return policy on any bike, Guaranteed Buyback, and fully transparent buying and selling programs, have all helped to bolster the company’s strong growth.
Levisay adds: “For many people, buying a bike is one of the biggest transactions they will make in a given year. Because of the technical complexity and expense of modern bikes – especially with the increasing popularity of e-bikes – buying from an open marketplace like Craigslist or eBay presents significant risk. The Pro’s Closet de-risks the entire process because all of the bikes we sell have been fully inspected by our mechanics and are 100% guaranteed.”
The Pro’s Closet currently sells bikes, frames, and components throughout the US and Canada.