Cutline: A worker prepares a used bike for resale at The Pro’s Closet facility in Louisville. Courtesy The Pro’s Closet
The Pro’s Closet, a certified reseller of used bikes, e-bikes and components, has closed a $40 million Series B funding round that was led by The Chernin Group.
Existing investors Foundry Group, Edison Partners and Ridgeline also participated in the round, according to information from the company.
The Pro’s Closet has experienced a spike in sales activity during the first quarter of 2021, with sales doubling over the same quarter of 2020. Over the past two years, The Pro’s Closet’s revenue has more than quintupled, and the company expects to double in size again in 2021, the company said in a press release.
The company plans to use the funding to “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 company said. The Series B investment will also permit the company to expand into new markets.
“We’re extremely excited to use these funds to develop even more highly compelling experiences and services for our customers,” The Pro’s Closet CEO John Levisay said in a statement. “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.”
“We have seen The Pro’s Closet’s explosive growth over the last several years and are very excited to invest in its expanding business,” Luke Beatty of The Chernin Group said in a statement. “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 its business grow and expand.”
The Pro’s Closet touts its approach to reselling of used bikes, which includes a 141-point certified pre-owned process, guaranteed buybacks, and a 30-day return policy as secrets to its success.
“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,” Levisay said.
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