As the pandemic fuels a craze for cycling, Europe’s biggest online marketplace for bikes makes an impressive stock market debut.+++
- Following impressive sales in recent years, Bike24 has made a successful debut on the Frankfurt Stock Exchange
- A desire to exercise, health awareness and sustainable green mobility solutions are boosting bike sales
- Bike24 will roll out country-specific online stores in France and Italy
Germany’s Bike24 floated on the Frankfurt stock exchange on 25 June, opening at €15.3 per share – 2 percent above its offer price of €15 – which valued the company at more than €670 million. The company’s IPO was preceded by a boom in sales, with an annual growth rate of 30 percent in recent years.
Founded in 2002 by Andrés Martin-Birner, Falk Herrmann and Lars Witt, the Dresden-based one-stop bike shop – of which the Riverside Company global investment firm owns a majority stake – offers customers 77,000 products from more than 800 brands, the widest range anywhere in continental Europe. It has become one of the biggest e-commerce bicycle platforms in continental Europe. The online bicycle platform operates dedicated online stores in Germany (Bike24.de), Austria (Bike24.at) and Spain (Bike24.es).
Relentless growth
Alongside an average growth rate of 30 percent per year since 2018, the company generated sales of €199.2 million in 2020, an increase of 45 percent compared with 2019. Sales have accelerated of late, increasing 75 percent to almost €58 million in the first quarter of 2021 year-on-year. Gross profit more than doubled from €2.9 million in 2020 to €7.3 million this year.
Pandemic fuels cycle industry boom
Bike24’s strong figures are fueled by a global boom in cycle sales as many took up cycling during the lockdowns for exercise or to avoid using public transport. According to reports, the trend, which has caused stock to dry up in parts of the U.S., has led to strong performance figures across the industry, for example, with British retailer Halfords reporting a doubling of bike sales annually this year.
Additional social trends have also had an influence, such as increasing health awareness, sustainable green mobility solutions and the desire for premium products in online retail. The continuing expansion of urban cycling infrastructures in many cities in Europe, driven partly by the European Green Deal, is expected to further boost demand.
What next?
Following the successful launch of its online store in Spain, Bike24 plans to roll out country-specific online stores in France and Italy and establish local logistics and fulfillment centers. According to its management, as the company expands, its product range will be adapted to local markets.
