The past year has marked a crucial turning point for Colorado-based The Pro’s Closet.
The company, which buys and sells pre-owned bicycles, experienced tremendous growth in 2020 and moved into a new facility in Louisville to accommodate its plans.
With the demand for bikes skyrocketing during Covid-19, the company saw its sales double; and recently appointed CEO John Levisay said The Pro’s Closet realized the opportunity it had to accelerate the business
In order to facilitate its growth, the company brought on a $40 million Series B funding round in May, led by The Chernin Group with participation from existing investors Foundry Group, Edison Partners, and Ridgeline.
Levisay said the funding points to the company’s success but doesn’t mean they’ve reached their pinnacle.
“The decision to bring on funding now is not something we take lightly, I’ve been down this road and raising money is not a victory unto itself, it’s a means to an end,” he said. “The magnitude of the opportunity is ultimately what drove the fundraise.”
The Pro’s Closet, which was founded in 2006 and operated exclusively on eBay until 2017, aims to become the most trusted retailer in the secondary bicycle market, Levisay said.
The Pro’s Closet purchases new and pre-owned bikes and accessories from manufacturers, retailers and individuals, and then gives them a certified pre-owned inspection and service before listing them for sale.
And, in stark contrast to traditional pre-owned bike sales, the company’s buyback guarantee gives customers transparency by offering guaranteed trade-in values for 18 months after purchase.
“As bike prices have evolved over the last 10 to 15 years, people are buying bikes now that cost as much as cars do,” Levisay said. “Having a viable and fluid aftermarket gives people access to bikes that they might not be able to buy new.”
Levisay, who was named CEO in September, is familiar with the type of growth the company is experiencing, having spent nearly a decade as founder and CEO at Denver-based Craftsy.
With this funding on board, he said the company is looking to scale its team and increase its focus on the areas it excels in.
On the hiring side, The Pro’s Closet is looking to grow its 116-person team to nearly 200 people in the next year. Those hires will be across departments, including web development, data analytics, marketing and more.
Those hires will be largely focused at the company’s new 137,000-square-foot facility in Louisville. The building is the former North American headquarters for Fjallraven and features 40,000 square feet of office space and 24 shipping bays. The company moved into the new space in recent months after relocating from a space that was only 27,000 square feet, Levisay said.
In addition to hiring, The Pro’s Closet will consider further physical expansion into markets across the country, and the world.
“Ultimately, there will be opportunities from a supply perspective to have stronger presence in some of the bigger markets to aggregate supply,” Levisay said, floating eastern Europe as a potential location.
For now, the company is focused locally and will be rolling out curbside pick-up and drop-off for customers within driving distance. And, for those outside of that range, Levisay said the company is testing reusable shipping boxes to reduce waste.
“We’re not wasting cardboard and it makes it easy,” he said. “You get the box to your door, you put the bike in and print a label and it gets picked up.”
While Covid-19 has driven many people to and back to biking as a source of companionship and exercise, Levisay said he believes it’s not just a pandemic trend.
“The pandemic reminded people of cycling. A lot of the water level that rose in the cycling industry as far as awareness, engagement and demand, will not recede on par with the pandemic,” he said. “I believe that cycling is having a years-long zeitgeist moment.”
