With a new world champion in Mark Cavendish and Tour de France contenders such as Bradley Wiggins, there's never been a more opportune time to back British cycling. But with a different prize in mind, the private equity group behind Wiggle, the cycling and triathlon gear website, is working out its race plan after hoisting an estimated £200m for-sale sign.

Its owner Isis Equity Partners is deliberating whether to quietly sell to another buyout firm or attempt the City equivalent of the Alpe d'Huez by pursuing a stock exchange listing. Its chief executive, Humphrey Cobbold, is insists an IPO is a "serious option".

Sales at Wiggle have more than quadrupled in the last five years to reach £86.8m in the year to 31 January, thanks to a growing obsession with cycling and triathlons among "mamils" – a phrase coined by analysts at Mintel as shorthand for "middle-aged man in Lycra". Profits surged 43% to £10.2m. In a bombed out retail sector, Wiggle is a welcome success story with growth of 56% last year helping it to attract buyout firms such as Fat Face owner Bridgepoint and Warburg Pincus, which owns Poundland, to the auction.

"Cycling is the new golf," says Cobbold. "Middle-aged men and women have decided that they are better off spending three or four hours on their bike than hitting a little white ball around a fairway." Even without the buzz generated by high-profile wins such as Mark Cavendish's recent triumph in the world championships road race, the sport has a growing amateur fan base with sportives – cycling competitions – popular fixtures. Britons are also queuing up to compete in triathlons, with last month's event in London, which attracted 13,000 entrants, the world's largest.

Alexander Grous, an academic at the London School of Economics, has calculated that cycling provided a near £3bn boost, or "gross cycling product" as he puts it, to the UK economy in 2010 based on manufacturing as well as related retail sales and jobs.

His study found 13m people are now cyclists, with 3.7m bikes sold last year, a 28% increase on 2009 as high petrol prices and crammed trains and buses encouraged commuters to switch to two wheels. Social and economic factors have resulted in a "step-change" in the UK's cycling scene, says Grous adding: "The growth in involvement we've witnessed in recent years feels like a sustainable trend for the first time."

Wiggle started life as Butlers Cycles, an independent bike shop in Portsmouth that had been trading since 1920. Its entrepreneurial founders Mitch Dall and Harvey Jones branched out into selling accessories online, launching the website in 1999. The venture took off and in 2006 Isis acquired a stake for £12m, valuing the business at nearly £30m.

In short order the internet has grown to account for 8% of UK retail sales with "pure play" retailers escaping some of the pain experienced by traditional store groups. Online penetration is even higher for cycling goods with demand for puncture repair kits, power shakes and Lycra unitards a £1.4bn market.

Wiggle doesn't compete with the cut-throat pricing of the supermarkets, which import bikes from China, selling them for less than £100. It concentrates on serious riders willing to spend more than £600 on their wheels and its range includes top-end bikes by US manufacturer Felt that cost as much as £7,500. "It is a brand-led marketplace – guys love gear," says Cobbold.

Febrile financial markets are making investors increasingly risk averse with companies big and small getting their wings clipped. Fellow internet retailer The Hut Group has delayed its listing until next year while daily deals website Groupon last week scaled down its fundraising plans. "Retail flotations are viewed suspiciously at the moment," says Panmure analyst Philip Dorgan who points to the experience of Ocado which failed to get big institutional investors and fashion website Asos, the former stock market darling which has seen its shares tumble 40% in the last three months. "It might not be a good time to float a pure play online retailer."

If Wiggle does float, the company's management and advisors are in for a gruelling ride. Cobbold adds: "I'm absolutely committed to leading Wiggle into its next phase whether it is a listed or private company." He also points out neither road is easy: "Private equity [firms] are not renowned for being pushovers."