Woom invests in sustainability and starts production in Poland

Founded only in 2013, Austrian kid and juvenile bike supplier Woom has made a name for itself not only in the German-speaking world. With the entry of a group of investors Woom founders and CEOs Marcus Ihlenfeld and Christian Bezdeka now have fresh money on board. This investment will help to grow further in- and outside Europe.

According to Woom, this strategic investment is intended to “drive forward internationalisation and digitisation, as well as open up new production sites in Europe”. Together with its new partners, the production of bicycles is now to be established in Europe – more precisely in Poland. This means that in the future as part of the company’s sustainability strategy they intend to produce close-to-the-market and the European market is currently by far the largest for Woom. Woom bikes for the rest of the world, which includes countries in the Asia-Pacific region and the Americas, will continue to be produced in Asia.

The investor group stepping in has acquired almost a third of the Woom company shares. This group includes the investment company Bregal Unternehmerkapital with 27% of shares, Runtastic founder Florian Gschwandtner, entrepreneur Stefan Kalteis and three German investors have a combined 6% stake in the company. A two-thirds majority in the rapidly growing bike supplier is still held by the company founder and CEO duo, meaning that they retain control of what they established.

Like-minded investors sought

According to the CEO’s, the search for investors who are in line with Woom’s corporate values such as sustainability, responsibility and enjoyment of the product began a year ago. At that time, the Austrians were enjoying a veritable explosion in demand. This was then pushed up once again by the corona crisis and the general global sustainability trend.

The past years have been a kind of warm-up before the play-offs

“This year’s growth of 60% has encouraged the Woom founders to strive for the next level,” they say. “Compared to what we are facing now, the past years have been a kind of warm-up before the play-offs. Now it’s just getting started,” explains Marcus Ihlenfeld.

Strategic investment

What is particularly important to the Woom makers and is characterising their business activities is responsibility and sustainability. “We have chosen our partners with this in mind,” emphasises Woom’s 3rd Managing Director Guido Dohm, who was appointed earlier this year. This means that family investors such as Bregal, in contrast to private equities that focus on rapid profit maximisation, have their origins in entrepreneurship: “Family investors such as Bregal have a high understanding of companies seeking capital, as well as a comprehensive personal network.”