The UK cycle designer and manufacturer Pashley Cycles was 97 years old when it proved that equity crowdfunding is not just for startups, and ran its fundraising round on the Seedrs platform (now Republic Europe) in 2023.
In 1994, the Williams family had acquired control of the business, and they had plans to bring the historic brand in to the 21st century. Chairman Adrian Williams was keen to encourage the company’s many customers to become shareholders alongside retail investors registered with the Seedrs platform.
The target was to raise £500,004. When the campaign closed in December 2023 it was overfunded by 120%: 242 backers had invested £687,714. For this sum they acquired 21.8% of the business. The proceeds were to be used to accelerate development of three key areas of growth in the sustainable transport sector:
- E-cargo bikes: they are being increasingly used by business for environmentally friendly delivery of post, cargo and all manner of packages
- Bike-share bikes: cities and local authorities are introducing bike-share schemes to reduce pollution and improve urban environments, and
- Leisure e-bikes: as more consumers are using e-bikes for their personal transport and leisure needs.
Beyond raising money, good crowdfunding is good marketing, and Pashley Cycles’ successful fundraising also acted as marketing activity to alert key stakeholders among suppliers, corporate customers (including the Post Office), iconic brand owner affiliates (including the Morgan car company, Mulberry fashion and Mont Blanc pens), plus e-bike share scheme operators, that the company was developing new products and routes to market in the three sectors specified above.
Almost a year after the crowdfunding closed, an October 2024 interview with Pashley Cycles’ CEO Andy Smallwood, published by The Retail Bulletin, confirms that the money raised through its 2023 equity crowdfunding is indeed supporting its innovative e-cargo delivery bikes in the marketplace, and further development of Pashley’s bike share proposition.
Pashley’s e-bikes have been provided to public share schemes operated by Transport for London (TfL) in the capital and to West Midlands Cycle Hire. Beyond the footprint of the TfL bike hire scheme, Pashley is also working on an exciting partnership with property developer Berkeley Homes to provide a micromobility service to residents of its “Green Quarter” community in Southall, near Heathrow. Following an initial launch of 30 bikes in August 2024, plans are in place to expand the scheme.
The company has also recently explored direct-to-consumer (DTC) sales using its website and shop in Stratford-upon-Avon that is located in the town centre, just two miles away from the workshop. This will push the brand out to a wider audience, without alienating its traditional dealer network. Customers buy online through “Click and Collect,” and collect their bike at their nearest Pashley Cycles’ dealership. This gives the dealers an opportunity to impress on the new owners the benefits of their servicing operation and the range of accessories they can provide. Sales of the new Pathfinder range have been split around 50/50 between traditional bikes and e-bikes.
E-bikes will play an increasing role within the company and within the wider trend for micro-mobility, Smallwood says. “The transition to electric has been across 10 years and in the past three to five years it has taken off. Electric will continue to grow in the UK where there is a long way to go, especially as we’re lagging behind the rest of Europe.”
Much of the strategic initiatives at Pashley will be underpinned by its in-house design and manufacturing that will play a vital role in the company being able to differentiate itself from the pack and help it build-out its presence in the UK and further afield. It was all accelerated by successful crowdfunding.
Pitch deck: https://europe.republic.com/pashley-cycles