Bicycle startup AlphaVector records 2.5x rise in monthly revenue rate
AlphaVector, a manufacturer and designer of bicycles, has recorded a 2.5x growth in Monthly Revenue Rate (MRR) for the between March and September, 2020 due to the increased demand for this mode of transport owing to COVID-19 pandemic.
According to a statement from AlphaVector, it believes that the pandemic has further encouraged people to find alternate ways of commuting, exercising and entertainment, adding to the rising demand of bicycles in India.
This startup, founded in 2015 by Sachin Chopra and Vishal Chopra with its Frog brand of bicycles, is aiming to achieve an annual revenue run rate of Rs 300 crore next year. It will also ramp up supplies in the next couple of months to meet market demand.
Sachin Chopra, Founder and CEO, Alpha Vector, said, “India is one of the largest producers of bicycles in the world but lacks innovation and customer-centricity. Infrastructure challenges notwithstanding, India has more conducive days per year for cycling as compared to Europe and the US. COVID-19 has brought to the forefront issues related to health, fitness and the environment catalyzing the demand for bicycles across the world.”
AlphaVector is currently present in 350 cities and follows an omnichannel business model which combines direct to consumer online route and offline network of 700 retailers.
“At AlphaVector, we see the potential that cycling as a culture holds for Indians and believe that adopting it can bring about a positive change in our otherwise sedentary lifestyles. Urban mobility, fitness and a drive towards an active outdoors lifestyle will underline the strong growth in the bicycle market for years to come,” Sachin said.
India is a large market for bicycles with over 20 million units sold every year, but AlphaVector believes that there has been minimal innovation. It aims to redefine the market with trendier designs and products sold at a cost-effective price point.
The investors who have backed this startup are: Avaana Capital, Titan Capital, and Fireside Ventures.