Bikmo raises £3.4 million to drive European expansion
Bikmo, the Chester-based specialist cycle and e-mobility insurer has raised £3.4 million in a Series A extension round led by Puma Private Equity to accelerate European expansion and drive product innovation.
With the European cycling market growing rapidly, the B Corp certified specialist insurer protects over 75,000 riders in the UK, Ireland, Germany and Austria and is currently focusing on expanding into other European markets and supporting multinational partners.
As the cycle market grows, the European Parliament has called for 2024 to be the ‘Year of Cycling’ to double the distance covered by cyclists by 2030. eBike adoption is also rising significantly with UK electric bike sales growing by over 40% in 2020[1] while 50% of bike sales in Germany were eBike sales in 2022[2]. Bikmo has capitalised on this trend – 40% of new policyholders insure eBikes – and the company offers a range of insurance products to protect every type of cyclist from road cyclists and triathletes to daily commuters.
Today, the business covers individual and commercial risks, including cycle retailers, and fleet operators, working for brands such as Deliveroo, as well as offering cover extras such as legal protection and breakdown assistance.
The award-winning business has scaled significantly since launch through securing strategic partnerships with leading organisations such as British Cycling and Cyclescheme and has delivered an 85%+ retention rate on existing customers year on year. The business is also 4.5 out of 5 rated on both TrustPilot and Feefo; a good window into customer satisfaction.
Growth has been driven through securing investment partners Hiscox, Development Bank of Wales and new investor, Puma Private Equity.
In developing and service offering, the business has built a core platform of microservices, an API ecosystem and data insights, all enabling Bikmo to move fast across territories, products and verticals. The newly developed API means Bikmo can deliver embedded insurance solutions (insurance that can be purchased as part of another product or service transaction) through retail, manufacturing and other partners to integrate the product into their customer journeys to maximise conversions. Bikmo has delivered its first fully embedded insurance solution with BuyCycle in Germany and is focusing on integrating embedded solutions with new and relevant existing partners.
David George, CEO, Bikmo comments: “We’re stoked to close this round and onboard Puma Private Equity as we accelerate growth in the UK and Europe, the next big step in our mission to protect the world’s riders. Working with a company aligned with our values combined with their depth of experience in international growth across a wide range of technology-enabled sectors is a perfect match for Bikmo.
“The investment will allow us to invest into the people and technology we need to both support and protect our existing rider base and trusted partners, as well as exciting growth projects.”
Kelvin Reader, Investment Director, Puma Private Equity commented: “We are really excited to be backing Bikmo at this significant stage in their growth journey. They are ideally placed as one of the UK’s largest specialist bike insurers to capitalise on the e-bike movement and the increasing number of people opting to use bikes as a mode of transport. CEO, David George and his team launched the business with a mission to build a service that enables riders to spend more time doing what they love and that is still at the heart of what they are delivering. Having secured notable partnerships and built API technology to maximise conversions they’re on an impressive growth trajectory.
“We are also thrilled to back another company in the North West, our first deal since we set up a Manchester office to expand our presence in the North with Investment Director, Mark Lyons and new recruit Emily Bourne. We are well placed to support the next generation of exceptional scale-up businesses emerging from the region.”
Anthony Favell, E‑commerce Trading Manage, Brompton commented: “We started working with Bikmo in 2017 to protect Brompton riders and their bikes. They developed bespoke features like 25% lower pricing thanks to Bromptons being a lower risk, and courtesy Brompton bikes for customers waiting for a replacement from our London factory. Since launching in the UK, Bikmo has expanded the partnership to other Brompton markets and we look forward to exploring how their latest investment and upcoming growth plans will take our partnership forward.”
As a B Corp and 1% For The Planet Business Member, Bikmo is committed to better business. It is an active advocate for the cycle sector and supports bike and outdoor non-profits that improve the world for cyclists. The business is committed to making a positive impact on society and the environment by getting more people on bikes.
