eEquity invests in NA-KD – new issue of SEK 140 million for continued global expansion
The Swedish e-commerce company was founded in April 2015, and NA-KD.com launched in December of the same year. The company, which is e-commerce entrepreneur Jarno Vanhatapio’s third start-up, is growing fast. Now, the private equity firms Northzone and eEquity have come on board as investors, providing capital and experience to secure future global growth
CEO Jarno Vanhatapio comments:
In our first year of operation, we’ve already had a lot of inbound interest from venture capital firms in the Nordic countries, Europe and the USA. This is as a result of our fast global traction, which has been the engine to our growth. For us, it’s important that our investors share our global view, and have a capacity that matches our ambitions over the coming years. In Northzone and eEquity, we have found two investors that are rated highly internationally. Besides capital, they will support the board with relevant knowledge around the process of internationalisation, with their strong track-records of investments in companies like Spotify, Bloglovin’ and WhiteAway. I am especially happy that both their representatives on our Board have a strong entrepreneurial e-commerce backgrounds.
The capital injection will primarily be used to improve the customer experience, offer a broader inventory, and marketing. Today, the company employs 90 people, and with the investment, the company will look to further strengthen all departments. The head office will continue to be based in Gothenburg, but in Q1 2017, a smaller office will open in Stockholm. The company has already planned for the opening of a central depot in the Netherlands in Q1, which will serve customers in Europe and the rest of the world with fast and environmentally friendly deliveries. The complementary semi-automatic depot will have an initial capacity of 10 000 fulfilled orders per day. The turnover yearly run rate is currently SEK 220 million. Jarno Vanhatapio as the entrepreneur and CEO will remain the largest shareholder.
Patrik Hedelin, Partner at eEquity comments:
We are impressed by the brand awareness NA-KD has built with their target audience in a very short space of time, and the role that social media has played in achieving this. Few e-commerce companies are in a better position to roll out globally as fast as NA-KD, with strong support from their own collection and social media strategy. We value the experience that Jarno and several other members of the team have gained from building up Nelly to a significant company. We believe that NA-KD has a strong potential to become a global digital fashion house for generations Y and Z, where we will see a combination of global roll-out, fast growth, strong margins, and in due course good profitability.
NA-KD´s chairman and third largest owner, Magnus Emilson comments:
Our main focus for 2017 and beyond will be on NA-KD as a brand and store, as this part of the business generates the majority of our revenue, showing strong growth and good margins. With Northzone and eEquity on board, together with our business angels, we are well equipped for our next phase of international expansion. Our focus from day one has been to build a leading global fashion player. With
the new capital injection, we have the resources to build the company with a long-term view, without losing focus on growth, which is a part of our DNA.
eEquity has specialised in investing growth capital in fast growing Internet companies with an emphasis on Internet retailing. eEquity has previously invested in WhiteAway, whitegoods online, where eEquity contributed to build the company from DKK 150 million to 1 022 million during 3.5 years and generated a multiple of 4.5x of invested capital. eEquity has also invested in other leading Internet retailing companies such as Footway, RoyalDesign, Caliroots, Swap.com, Kidsbrandstore and Eleven. eEquity invests normally in companies with a turnover between EUR 5-20 million with an ambition to build them to in excess of EUR +100 million turnover with profitability. The portfolio companies have been growing by on average 40 % yearly during the holding time of eEquity. eEquity has created on average 1.1 new jobs per million that has been invested. eEquity raised its third fund, eEquity III, of SEK 750 million (EUR 80 million) in September 2015 where NA-KD constitutes the sixth investment.
For further questions:
eEquity Partner Patrik Hedelin
+46 70 545 2889
NA-KD CEO Jarno Vanhatapio
+46 76 899 1800
eEquity is a leading Private Equity firm that invests in Nordic internet and e-commerce companies. The E-commerce companies includes names such as WhiteAway, Footway, Swap.com, RoyalDesign, Caliroots, Kidsbrandstore and Eleven. eEquity has invested in the online sector since 2010 and has around SEK 1.2 billion under management, in three funds, with a total of 14 portfolio companies. eEquity invests primarily in entrepreneur-led growth companies with potential to become market leaders. The investors behind eEquity are significant European family offices and financial institutions. eEquity is led by Patrik Hedelin and Magnus Wiberg who are both experienced internet entrepreneurs with experience from boo.com and Pricerunner.
Nakdcom One World AB is Jarno Vanhatapio’s third e-commerce company, having founded Nelly.com (2003) and Zoozoo.com (2013). NA-KD was founded in April 2015 and operates in the global market for fast fashion, primarily online, but also through pop up shops. NA-KD.com as an online store launched in December 2015 and has in a short space of time established itself as a global fashion player with annual revenues of 220 MSEK (22 MEUR). The website has had 15 million visitors in 2016. The brand is one of the fastest growing in social media, and has since the start earned over 750 000 followers from 150 countries. Most followers are on Instagram, under the account @nakdfashion. NA-KD.com has under its first 12 months of operation, delivered customer orders to 140 countries and employs 90 people. The
majority of their sales are from NA-KD.com and their own brands, such as NA-KD Trend and NA-KD Boho, which are designed in-house. Alongside Jarno, the company is backed by 13 business angels and IT entrepreneurs, including NA-KD’s Chairman Magnus Emilson (Visit Group), Mikael Söderlindh (Happysocks), Jonas Mårtensson (Mojang), Roy Forslund (Infotech), Svante Elfving (Brummer & Partners), Lena Apler (Collector Bank) and others.