Ragtrader.com.au can confirm German-backed etailer theiconic.com.au has received another hefty load of investment, set to fuel the next stage of aggressive growth.
The investment, of 20 million Euros (approximately AU$25 million), was placed in its German holding company from US based growth equity investor Summit Partners (“Summit”). The Iconic has confirmed it will use the funds to “continue developing growth initiatives and expanding product offering”.
This most recent funding windfall also marks the second firm to invest in the etailer in less than six months, after US investment management company J.P. Morgan Asset Management staked its claim in September 2012 [as previously reported on ragtrader.com.au].
Commenting on its most recent coup, The Iconic managing director and co-founder Haensel said the financial boost would propel the company to new heights.
“The investment of Summit Partners makes us proud and reinforces our strong belief in the future of the Australian e-commerce sector. Summit has extensive experience in supporting fast-growing companies which will be of huge benefit as we continue to build out our offering and services to win the Australian and New Zealand market,” he said.
Summit Partners London office head and managing director Scott Collins added that it was The Iconic's rapid growth that was particularly attractive as an investment.
“We seek to invest in companies that build long-term value, and The Iconic has shown dynamic growth in a short period of time. We are thrilled to support The Iconic story and participate in Australian online retail,” he said.
The Iconic, launched in Australia in October 2011 with the support of Rocket Internet GmbH, led by its five co-founders Finn Age Haensel, Adam Jacobs, Cameron Votan, Ryan Tuohy, and Andreas Otto.
Boasting three-hour delivery across Sydney, free overnight shipping, 100-day free returns, and live chat with its local customer service teams, the company has grown to become one of Australia’s leading online fashion and footwear retailers.
The company currently ships thousands of orders per day, boasts approximately 300,000 Facebook fans and 14,000 Instagram followers, and last year was awarded Australia's 'Best New Online Retailer' for 2012 at the Online Retail Industry Awards.
The Iconic's recent success also includes a re-launched website, a new print magazine and an expanded product range with new categories including kids, sports, surf and skate.
Summit Partners is a growth equity firm, founded in 1984. To date, Summit has raised nearly $15 billion in capital and provides equity and credit for growth, recapitalisations, and management buyouts. The firm has invested in more than 350 companies globally in the technology, healthcare and other growth industries.