Brompton, the British maker of one of the best folding bikes in the world, has secured £19 million from BGF, a fund that invests in growing businesses.
The deal, announced on Tuesday, gives BGF a minority stake in Brompton. The company will remain independent, owned by its founder Andrew Ritchie, its CEO Will Butler-Adams, and their friends, family and staff.
Butler-Adams said that Brompton needed to “move faster” to tackle climate change and grow its global presence. He said the company had grown organically by 20% a year, reaching a turnover of £130m in 2023, with 80% of its bikes exported to 46 countries. He said the company had launched new products, such as the Superlight T Line and Electric P Line bikes, and made its one-millionth bike in 2022.
“But this is not enough, we need to move faster. The impact of climate change is being felt by us all and the greatest carbon emissions come from our cities where most of the world’s population now lives.
“Our team at Brompton are brimming with ideas to accelerate our growth through product innovation, storytelling, outstanding stores and having fun with our amazing community. But if we are really going to go for it, we need to strengthen our balance sheet to give us the confidence to be more ambitious.”
Brompton’s accounts show that its turnover increased 40% to £106.9m in 2022, but its pre-tax profits fell 28% to £7.1m. The company said this was due to higher spending on research and development, staff, supply chain and manufacturing costs, as well as inflation.
Daina Spedding, an investor at BGF, said that Brompton and BGF had “clear synergy” and shared long-term goals. She said:
“We are incredibly excited to be backing an iconic British brand that is rich in heritage and engineering prowess, with an outstanding track record of profitable, global growth. From the outset, there has been a clear synergy between Brompton and BGF, with shared long-term goals and a focus on sustainable growth that is good for both people and planet.
“We look forward to supporting the business as it continues to expand into new markets and invest in new technologies and manufacturing capabilities to meet ever-growing demand for its revolutionary cycling range.”
