Blue Circle, which owns bicycle retail chain Xedap.vn, and Excelsior Capital Asia officially signed an investment cooperation agreement on February 2.

Excelsior Capital Asia will become a strategic partner of Blue Circle. The funding will be used to expand Xedap.vn’s retail chain and build up a bicycle and accessory product portfolio to serve the growing demand for green transport in Vietnam, while developing a technology platform to connect various cycling activities and build a nationwide sports community.

It will expand its chain to over 100 stores nationwide in the years to come and build a technology platform that connects cycling and sporting communities, bringing bicycles to all families in Vietnam.

Mr. Peter Nguyen, Founder and CEO of Xedap.vn, said the trend of riding bicycles in Vietnam has been on the rise in recent years as a way of exercising and as an environmentally-friendly and green form of transport. Many major cities around the world, such as Amsterdam, Copenhagen, Berlin, and Beijing, have planned and developed urban infrastructure to encourage people to use bicycles by building bike lanes and underground bicycle parking.

“With the formation of the MRT electric train network, the expansion of large urban areas, and the increasing demand for alternative transportation, we believe that bicycles will play an important role in the lives of Vietnamese people,” said Mr. Nguyen. “Blue Circle’s mission is to bring at least one bicycle to every Vietnamese household.”

According to Mr. Hoang Xuan Chinh, Managing Partner of Excelsior Capital Asia, Vietnam’s urbanization will continue to accelerate in the years ahead, with rising GDP per capita, increasing awareness among consumers about health and environmental responsibilities, and better infrastructure counting among the key underlying factors behind the rising demand.

“We are confident that Blue Circle holds a great advantage in the bicycle market as the pioneer in building retail chains and wholesale business and providing professional services,” said Mr. Chinh. “From early on, the company focused on building a digital platform serving the multi-channel shopping experience, from online to offline.”