Factor Bikes, and its parts and accessories subsidiary Black Inc, has raised a latest round of funding from an investment consortium. This consortium includes professional cyclist Chris Froome; Sam McKay, Co-Founder of Point King Capital; and Scott Farquhar, Co-Founder of Skip Capital.
Chris Froome and Sam McKay (representing Point King Capital and Skip Capital) will join Factor/Black Inc’s Board of Directors, while company founder and CEO Rob Gitelis will retain his position as majority shareholder.
According to Factor/Black Inc, the fundraising will support the business in driving its global growth strategy that will see continued investment in product, innovation and talent as well as global channel expansion.
Factor/Black Inc recently announced it is looking to open a new retail facility in Melbourne as part of enhancing its direct-to-consumer experience and also signed on for another year as sponsor for the UCI World Tour professional cycling team, Israel Start-up Nation.
This transaction represents Chris Froome’s first investment in a bicycle company. The seven-time Grand Tour winner and four-time winner of the Tour de France will reportedly… ‘play an active role in providing strategic direction, especially with regards to product development and marketing/sponsorship decision-making.’
Speaking from his Monaco base as he prepares for the remainder of the 2021 season, Chris Froome said “I’m really excited to be joining the Factor/Black Inc team. Over the past year, I’ve had a first-hand look at Factor/Black Inc’s technical and development prowess.
“I truly believe that they’re building something special, and I can’t wait to bring my racing experience and product understanding to help the company continue to bring ground-breaking innovations to cyclists all over the world.”
Commenting on the announcement, Founder and CEO Rob Gitelis said “We are genuinely excited to bring on new capital partners who will help Factor realise its potential. With Chris, Point King Capital and Skip Capital we have the ideal team to support and advise us on every aspect of our business as we enter a new, growth-oriented chapter.
“They all understand and support our mission to push boundaries and challenge the status-quo, which is critical.”
Scott Farquhar, Co-Founder of Skip Capital, said “I love cycling, so it’s a dream to be able to play a small part in one of the most innovative companies in this space. Rob is a wizard when it comes to building bicycles, and the team behind Factor are truly building something special.”
Sam McKay, Co-Founder of Point King Capital, added “Scott and I share a passion for innovation, technology and smart design; and Factor is a brand that we have admired for some time for breaking new ground.
“Helping consumer brands accelerate growth in global markets is what we do at Point King Capital, and we see huge potential for Factor. I am excited to partner with Rob, Scott and Chris to support Factor in executing the ambitious global growth plan ahead.”
Australia expansion
Factor Bikes and Black Inc are expanding in Australia, with the intention to establish a flagship store in the Melbourne area.
According to Factor/Black Inc Founder and CEO, Rob Gitelis, “This move will provide Australian riders easier and quicker access to our brand, as well as an improved customer service experience.”
Gitelis continued that the expansion in Australia also enables the brand “to test opportunities and experience learnings first-hand to better support a global surge in demand for Factor/Black Inc products.”
Key to the expansion is the appointment of Marcel Berger as General Manager of Factor/Black Inc’s Australia operations. Gitelis added, “We are delighted to have Marcel in this role. His extensive experience in international cycling and direct-to-consumer sales and marketing will help drive the next phase of Factor/Black Inc’s growth in Australia.”
