Aluna Partners arranges an up to $4 million venture debt facility with Fabbrica Italiana Telai S.R.L
Luxury bicycles and e-bicycles occupy a niche market catering to affluent and discerning consumers who seek both style and functionality in their transportation choices and value a premium design, performance, and exclusivity. Italy
Aluna Partners, a global investment banking firm with expertise in arranging alternative credit, announced that it has agreed to an up to $4 million venture debt facility with Fabbrica Italiana Telai S.R.L, a subsidiary of Exept. The company is based in Italy and specialises in the manufacture of luxury road and mountain bicycles. Under the terms of the agreement, the borrower can draw up to $4 million in the next 24 months to finance its footprint expansion. This debt facility was designed to complement the recently closed equity round from existing shareholders.
FIT specializes in the production of luxury bicycles for wholesale distribution, offering mountain and road bicycles in both legacy and electric models. By using Exept’s brand and proprietary patents, FIT can market a unique and high-performance drive solution, the marketed models are expected to be the lightest aero-road electric bikes in the market.
The bicycle industry has experienced significant growth in recent years, fueled by increasing awareness of environmental issues, rising urbanization, and a shift towards healthier lifestyles. With advancements in technology and innovation, e-bikes have emerged as a popular alternative to traditional bicycles, offering convenience and ease of use, particularly in urban environments. The strong performance of the industry is also evidenced by the rising investor interest, as evidenced by KKR’s acquisition of Accel Group which took the company private, and the sale of Pinarello by LVMH-backed private equity firm L Catterton to an unnamed private family office.
Luxury bicycles and e-bicycles occupy a niche market catering to affluent and discerning consumers who seek both style and functionality in their transportation choices and value a premium design, performance, and exclusivity. Italy, renowned for its craftsmanship and design heritage, with companies such as Ferrari, Bugatti, Dolce & Gabbana as flagships of Italian excellence, is home to several luxury bicycle and e-bicycle manufacturers specializing in high-end models. These companies leverage premium materials, innovative technology, and artisanal craftsmanship to create bespoke products that command premium prices. With a focus on customization and personalization, luxury bicycle and e-bicycle manufacturers differentiate themselves in a competitive market by offering unique riding experiences tailored to the preferences of affluent customers. Such craftsmanship, the search for quality, and the increasing popularity of cycling since the pandemic have led to a steady price increase for new bikes and e-bikes sold in European markets.
On a macroeconomic level, there has been a notable increase in demand for luxury goods globally, driven by emerging markets and the growing wealth of high-net-worth individuals, UBS projects that the share of the global population with wealth above $1mn will grow from 1.1% (~ 59.4mn individual USD millionaires) in 2022 to 1.5% (~85.9mn individual USD millionaires) by 2027. Also according to UBS, the aggregate wealth of HNWs has grown five-fold from $41.4tn in 2000 to $208.3tn in 2022. Despite economic uncertainties, the appetite for luxury items remains strong, with consumers prioritizing quality and exclusivity.
“The luxury goods space has experienced tremendous growth over the past decade. We believe that Fabbrica Italiana Telai will be a market leader in the design and manufacture of high-end bicycles through their B2B and D2C business models,” said Stefano Sciacca, Managing Director at Aluna Partners. “The widespread consciousness of how important well-being is for our lives, combined with an increasing demand for premium sports equipment and gear are trends that we expect to continue”.
Alessio Rebagliati, CEO at Fabbrica Italiana Telai S.R.L., added “The skills and knowledge gained in the design and production of carbon fiber frames and components allow FIT to market itself as a technological and manufacturing leader in the high-end sector. This sector is growing rapidly, giving us the opportunity to pursue important, long-term goals.
For a small, fast-growing company like FIT, venture debt is the ideal tool for financing the investments and operations necessary to achieve the ambitious goals.”
