The British folding bicycle maker Brompton has secured a significant investment from a French sporting goods retailer and a Chinese venture capital firm, marking a major expansion move for the brand.
The transaction is reportedly worth £18 million, with the French retailer taking a 10 per cent stake and the Chinese investor acquiring a 5 per cent holding. This partnership is expected to accelerate growth in China, which has become Brompton's largest market in recent years, surpassing the United States.
Brompton, founded in London in 1975, is renowned for its hand-built, three-part folding bicycles, which are exported worldwide to China, America, and Europe. The company's long-serving chief executive, Will Butler-Adams, believes the fresh capital will enable staff and long-term investors to realize cash from the sale of shares, while introducing market and technology expertise from the new backers.
The deal follows a challenging period for the cycling industry, which has struggled with declining demand since the pandemic boom. Brompton's pre-tax profits have increased significantly, from £4,602 in the previous year to £130,500, despite the industry-wide difficulties.
Despite the financial challenges, Brompton remains a significant player in the market, producing over 100,000 bikes annually, with top-end models selling for almost £6,000. The company has sold over 1.2 million bicycles since its inception, with a strong focus on urban cycling and community engagement.
The partnership with Decathlon is expected to further boost Brompton's growth, particularly in the electric bike market, which is forecast to experience steady annual growth throughout the decade. The investment from Decathlon's innovation arm, Decathlon Pulse, will see Brompton's signature folding bikes sold in select French stores, dubbed "Brompton corners."
The deal marks a renewed ambition for Brompton, following a difficult few years. The company's commitment to preserving its unique model while scaling its operations is shared by Decathlon Pulse's chief executive, Franck Vigo, who believes the partnership will "scale that model while preserving what makes Brompton truly unique."
