Online retailer StyleTread has secured $12 million in funding, with plans to use the cash boost to fuel global expansion.
The Australian online shoe retailer, which is already backed by companies Lakestar, Nine Enetertainment Co. and Adinvest, will now add Melbourne-based venture capital firm Starfish Ventures to its list of investors, financing a hefty $12 million investment.
While Starfish Ventures currently invests in companies across a diverse range of industries and technologies, including life sciences, clean technology, and information technology, StyleTread is the company's only fashion retail investment to date.
StyleTread CEO Mark Rowland said the $12 million cash injection will be used to support the brand's overseas expansion strategy, with next-day delivery for the New Zealand market set to launch later this week.
“We welcome Starfish Ventures as a partner given their extensive operating and investment experience in the Australian market. This latest round of funding allows us to considerably expand the range of already over 60,000 shoes and over 150 brands, as well as explore adjacent geographic markets and fashion segments,” he said.
“We are also looking forward to extend our strong relationship with Nine Entertainment Co. especially around media innovations merging TV, print, online and mobile advertising campaigns.”
Starfish Ventures investment director Nick Peace will also join the StyleTread board, adding to existing board members – Mark and Bjorn of StyleTread, Manu Gupta of Lakestar, Daniel Jarosch of BrandsExclusive and David Coleman of Nine Entertainment Co.
As Rowland previously revealed exclusively to ragtrader.com.au, StyleTread is also exploring the possibility of expanding its product offering via an accessories line and additional footwear. A mobile application is also in the works.
“We will expand as our customers would like us to. We have had requests from customers to offer additional footwear as well as launch an accessories range and apparel and we will evaluate these opportunities over time,” he said.
“We already receive several enquiries each day from New Zealand and are considering extending our service to our friends next door, and one of the most important projects in the next few months is to launch our mobile solutions, as we can already see very significant traffic on our website coming from mobile devices.”
StyleTread was founded by Mark Rowland and Bjorn Behrendt in late 2010 using incubation capital from Lakestar. The company has since grown to over 70 employees across its headquarters and warehousing operations in Sydney Olympic Park and attracts over one million visitors per month, has an over 40 per cent repeat buyer rate and 48,000 Facebook fans and counting.