Puma seals first regional investment deal into specialist bike insurer
Puma Private Equity has landed its first deal in the region with a £3.4million investment into Chester-based specialist bicycle and e-mobility insurer Bikmo.
It’s the first deal in the North since Mark Lyons left Praetura to join the investment house with a mission to build a team and a portfolio earlier this year.
Lyons did however lead an £8.3m series B investment round into Bristol-based global tailor-made holidays brand and managed marketplace TravelLocal.
Lyons told TheBusinessDesk.com that the series A funding round into Bikmo will grow into new markets beyond the UK, Ireland, German and Austria, where it already has a strong presence with cover provided for over 75,000 riders.
Completing the deal coincides with Lyons opening a Puma Private Equity office in St John’s Street in Manchester city alongside private houses and barristers chambers.
“It’s a converted townhouse that has more of a family office feel to it, and is similar in style to our London office.”
Mark Lyons, Puma
He has also been joined in the team by former Praetura investment executive Emily Bourne.
He hopes the deal will alert the market that Puma is very much in the market for growth capital deals requiring an investment cheque of between £2m and £10m.
“This is a good example of a company where additional capital can help it to grow a bit quicker. It’s got good fundamentals, key partnerships with British Cycling and Brompton and there’s quite obviously a surge in the popularity of cycling as a sustainable form of transport.”
He also said the average spend on e-bikes and cycles has increased dramatically, putting their insurable value outside of the scope of household insurance. Bikmo currently employs 35 people and is based at Chester West Business Park where the Welsh border practically runs through the office.
It’s existing investors include Hiscox and Development Bank of Wales, though the business isn’t revealing the size of Puma’s stake, which is being made on an equity only basis.
Louise Towers
Louise Towers, chief finance officer of Bikmo, a certified B-Corp, said there was an alignment in values with Puma as well as a “depth of experience in international growth across a wide range of technology-enabled sectors”.
She added: “This investment will also allow us to increase penetration in existing territories whilst retaining our strong lifetime values that demonstrates our strong route to profitability across all our markets.”
Specialist folding bike manufacturer Brompton started working with Bikmo in 2017.
Puma Private Equity’s advisers to the round include Shoosmiths, Ashurst, Douglas Squirrel and Johnston Carmichael. Brabners advised Bikmo on the round.
