Source BMX rides to success with BGF backing
BGF has completed a £5.7 million investment in Source BMX, the world’s leading omni-channel BMX retailer. The funding will be used to grow the company’s e-commerce offering and fast-track international expansion plans.
Source BMX was founded by brothers Rich and Marc Moore in 2003 and has grown to offer the largest selection of BMX bikes, parts and accessories anywhere on the market, sold direct to consumers via its website.
In addition to the retail business, Rich and Marc are the creators of Source Park – the world’s largest underground skate park, based in the brothers’ hometown of Hastings, East Sussex. They launched the Source Park in 2016 after redeveloping a derelict public swimming baths with support from Hastings Council. It is now a jewel in the crown of local regeneration efforts as well as acting as the focal point for their annual international BMX Event, the Battle of Hastings and an Amazon documentary. Despite recent closure due to Covid, Source Park will re-open in May-21 with an exciting new retail offering and courtyard, showcasing the best of local food and drink.
Rich and Marc both started riding at a young age. In 1998 Marc was ranked World #3 for racing in his age group, while Rich was also pursuing a career in BMX photography. Since opening their first BMX shop in 2003, to cater for the local riding community, Source BMX now exports to 93 countries internationally and has experienced sustained year-on-year revenue growth. It opened its US warehouse in November 2019, during which time sales in North America have grown to over 60% of total revenue. More recently, Source BMX opened a warehouse in December 2020 in Germany to aid European sales in light of Brexit and to facilitate expansion into Eastern Europe.
Source BMX has recorded average annual growth of 46% over the past three years and is primed for rapid expansion in an ever-expanding global BMX market. With Freestyle BMX due to be added to the Tokyo 2021 Olympics, awareness of the community-based sport is at an all-time high. There are a growing number of professional BMX riders and demand is filtering down to increasing investment in BMX tracks and skateboarding facilities designed to encourage budding BMXers to take up a new hobby.
Jonathan Simon, investor at BGF, led the deal alongside Bethany Shiers, Chris Morgan and Grant Paul-Florence.
Jonathan Simon said: “This is a hugely exciting investment for BGF. We believe wholeheartedly in the vision of both Rich & Marc and the potential of the brand. The business has grown quickly and developed a strong social following by maintaining its culture and focus along the way. There is a real opportunity to help scale the company into a globally recognised ecommerce platform in a growing sports niche. We look forward to supporting Source BMX as it reaches its ambitious growth plans.”
Rich Moore, managing director of Source BMX, said: “We’ve grown over the last 18 years without any external funding and now is absolutely the right time to bring in a partner that can help us to grow the brand and scale internationally. We had great chemistry with the BGF investment team and their approach to minority equity investment over a longer time frame was very attractive to us as a business.”
The transaction also sees Tim Patten join the board of Source BMX as non-executive Chair. Tim is an experienced multi-channel, marketing and e-commerce executive who has operated at Board Director level for the last 20 years at multi-channel retailers including TM Lewin, Morrisons, Jack Wills, Mothercare and Wyevale.
Tim’s appointment is the result of an introduction from BGF’s Talent Network, which is the UK’s largest pool of non-executive directors. He brings with him a wealth of multi-channel, marketing, digital transformation and e-commerce experience to help Source BMX reach its next phase of growth.
Marc Moore, e-commerce and marketing director at Source BMX, said: Alongside BGF, and with Tim’s support, we are fully committed to the next phase of growth. The investment will enable us to accelerate our growth plans and realise the many creative ideas that we have for the brand. We will continue to operate Source BMX with the same passion and integrity that we have always done – we still ride, we still have fun and now we have additional support to bring the brand to more people than ever before.”
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