The bike industry quickly turned from being an investors’ darling into a headache. What went wrong and how can the bike business attract capital now?
When the COVID-19 pandemic changed daily habits around the globe and threw a spanner into supply chains, bicycles and e-bikes were selling like hot cakes. Demand far exceeded supply, negating any discussions regarding pricing and discounts. The resulting sellers’ market led to companies reporting new record turnovers at healthy profit margins, as well as attention from consulting professionals from the likes of Deloitte. Based on a superficial analysis, they predicted the market for bicycles and e-bikes to double or triple within 10 to 15 years.
With those tempting perspectives and low interest rates, investing in the bicycle business seemed like a no-brainer in late 2021 and 2022, at least on paper. But investment firms such as Groupe Bruxelles Lambert at Canyon and KKR at Accell Group entered the bicycle business at its very peak, and thus overpaid for their share. From there, business nosedived, with profits eroding even more drastically than turnovers. For investment firms looking for short-term returns, this was the worst-case scenario, further compounded by overstock-enforced painful write-downs throughout the first half of 2025.
So where did things go wrong? According to finance expert Elisa Chiu of Anchor Asia, many investors underestimated the complexity of the bicycle industry’s supply chain, which makes it challenging for companies to respond quickly to sudden shifts in demand or to scale up rapidly. At the East Meets West x Bike Venture panel held at Eurobike 2025, she stated: “We need more thoughtful capital from angel investors, blended finance instruments, and family offices with deep sector affinity. We need investors who understand the long tail of this industry, not just the hockey stick.”
The few success stories during this time are not based on chasing quarter results and netting in fast profits. Leading Indonesian bicycle producer Insera Sena took over Marin Bikes when the brand reached rock-bottom and has since seen it rebound. Another prime example is RZC Investments, the investment tool of Walton heirs Steuart and Tom Walton, which has quietly and patiently built an impressive portfolio. Singapore-based DuTech Group also has shown cunning timing, saving first German companies Prophete and Cycling Union from administration and more recently Polish assembly specialist Sprick Rowery.
Despite recent developments, such as the “reciprocal” tariffs of the Trump Administration and volatile exchange rates, there should be a point where companies under financial strain become bargains for acquisitions and for investors who are not looking for a quick cash-in but who see the mid- to long-term potential of the bicycle business.
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