Babyshop was established in 2006 in a basement in Stockholm and the company now sells in over 50 countries, primarily in Northern Europe. AlexandAlexa, with its headquarters in London, has taken a leading position for kids’ clothes online in the English speaking world. The new group will cover Northern Europe and most English speaking countries and is expected to reach a turnover of over €40m next year, with 2 million monthly visitors.
“Fashion for children is one of the fastest growing segments on the internet and together with AlexandAlexa we will be four times the size of our closest European competitor”, says Marcus Tagesson, Co-Founder of Babyshop. “This gives us an excellent stepping stone for future expansion”.
Both Babyshop and AlexandAlexa hold the rights to premium brands such as Burberry, Bugaboo och Fendi in their respective geographies. The new group will continue to focus on high quality and outstanding customer service.
“This is an amazing opportunity to develop two strong global brands. I see significant opportunities in international development, investing in our people, processes and partnerships with our suppliers. We aim to be design-led, stylish and innovative, but also customer focused. I believe these will be our strengths and where we plan to invest most. All in all, 2015 will be the start of a new chapter for AlexandAlexa and BabyShop that I am very excited to lead”, says Magnus Fredin, CEO of Babyshop.
To enable the acquisition, Babyshop has raised capital through a share issue backed by Verdane Capital VII. The Fund has been a shareholder in Babyshop since 2010.
“When Verdane VII invested in Babyshop, the company had a turnover of €1m. We are impressed by management’s drive and the company’s growth, so it was important to us to support this transaction”, says Daniel Ahlstrand at Verdane Capital Advisors. Verdane funds have invested in 25 e-commerce businesses to date, so we bring significant industry knowledge and broad networks, in addition to capital.
About Babyshop
Babyshop was established in 2006 by Marcus and Linn Tagesson with a vision of building the best online kids store in the Nordics. Today Babyshop is a leading player in the global market and has a flagship store in Stockholm, Sweden. The company has won awards including ‘The Year’s E-commerce Award’ at the Nordic E-commerce Summit in 2011 and ‘The Best Online Fashion Boutique for Children’s Clothing’ at the Habit Fashion Awards in 2012.
About AlexandAlexa
AlexandAlexa was founded seven years ago by husband and wife duo Alex Theophanous and Alexa Till, with the aim of creating an online shopping destination offering the world’s best kids’ brands all in one place. In 2014, AlexandAlexa was awarded ‘Best Online Children’s Fashion Retailer’ for a third time at the Junior Design Awards, as well as ‘Best Online Fashion Retailer’ in the inaugural baby&me awards.
About Verdane
Verdane is a specialist growth investment firm that partners with tech-enabled and sustainable European businesses. Verdane can invest as a minority or majority investor, either in single companies or through portfolios of companies, and looks to deploy inside two core growth themes; digitalisation and decarbonisation.
Verdane funds hold over €6 billion in total commitments and have made over 400 investments in fast-growing businesses since 2003. Verdane’s team of over 140 investment professionals and operating experts, based out of Berlin, Munich, Copenhagen, Helsinki, London, Oslo and Stockholm, is dedicated to being the preferred growth partner to tech-enabled and sustainable businesses in Europe.
Verdane is also a certified B Corporation, the most ambitious sustainability accreditation globally. The firm only backs businesses that pass its 2040 test, which indicates whether the company can thrive in a more sustainable future economy.
Verdane is partly owned by the Verdane Foundation, which is focused on two areas: climate change and more equitable and inclusive local communities.
More info: www.verdane.com
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