Footway is the leading online footwear retailer headquartered in Stockholm.
Founded by Daniel Mühlbach, the former owner and co-founder of Lensway (contact lenses online) which he built to SEK 500 million in sales.
Business overview
Footway is today the leading online pureplay for footwear in Northern Europe
Footway currently offers 30,000 different shoe styles and 60 different brands
The addressable market for shoes in the Nordics is about SEK 30 billion with a low online penetration of approx. 10%, which is expected to increase to 25-30% in 2020. The online penetration in the US is about 20-25%
Key achievements
Best-in class IT system infrastructure with 150+ integrated applications
Significant focus on automating business processes:
Warehouse automation increasing efficiency and flexibility
Sourcing algorithms that efficiently, with AI and machine learning balancing product supply with demand
Fully integrated marketing automation solution enabling significant scaleup without meeting marketing inefficiencies i.e. the marginal cost of a new customer remains the same over time
One of few companies in Europe with complete real time automatic integrations with Facebook and Google
Strengthening of the management team and Board of Directors
Increase in working capital to allow for broader selection of products and expansion international expansion outside of Sweden
Two strategic acquisitions (Heppo in Apr-13 and Brandos in Dec-13)
IPO on Nasdaq First North in Stockholm on December 20, 2018
Many of our investment criteria where met when we invested in Footway
Digital business model
Strong organic revenue growth and high gross margins
EV target size in Fund II (SEK 60-150 million)
Large addressable market with a low online penetration expected to rapidly increase
Strong and coachable management team
Low average customer acquisition cost enabling Footway to experience strong organic growth under profitability
Strategic fit with portfolio
Potential to generate over 4.0x of invested capital
Wow-factor
Sales per market (Q4 2019)
28% of 2019 sales are from outside Nordics vs. 12% in 2018
Historic sales development
Footway has experienced very strong organic growth since eEquity invested in Dec-11. On average sales has grown 119% per year from 2011-2018, and the growth is expected to continue going forward.