Boticca.com closes £2.5m Series A funding led by MMC Ventures
Fashion accessories site to use investment to implement global expansion plans
London-based fashion accessories start-up Bottica.com has announced the completion of a £2.5m Series A funding round led by investment firm MMC Ventures and a series of high level international investors.
Turkish entrepreneur Sina Afra, the former European director of M&A for eBay, as well as French online entrepreneurs’ fund ISAI were among those who backed the deal. ISAI previously backed Bottica.com’s £1.5m seed round in June 2011.
Launched in October 2010, Bottica claims to be the world’s largest fashion accessories-only focused website and works with over 300 independent designers and brands offering thousands of products to 40,000 customers across the world.
Brands featured on the site boast an A-list celebrity following, including Cara Delevingne, Cameron Diaz, Eva Longoria, Rita Ora, Olivia Palermo, and Pippa Middleton.
Such interest has made Boticca.com profitable on customer acquisition for first purchases, meaning it costs the company less to acquire a new customer than it makes from the customer’s first basket.
The lifetime value of a customer is over four times the amount spent to acquire them in the first place. Sales growth has been equally impressive, with a year-on-year rise of 150% matching the site’s rise in traffic.
The finance will be used to support its plans to enter new international markets and to add local language versions of its website to its current offering.
The e-commerce provider will also utilise the investment within its marketing and sales strategy.
Bottica.com co-founder and CEO, Kiyan Foroughi, said: “We’re very excited by this new round of investment which is a testament to the pioneering and sustainable business model the entire team has built these past two and a half years.
“We look forward to working with our new investors to continue our international expansion and give independent brands the recognition and distribution they deserve.”
Jon Coker, MMC Ventures Partner, which has in excess of £100m under management and has backed the likes of AlexandAlexa, Base79, LoveHomeSwap, Reevoo, NewVoiceMedia, Masabi, KnowledgeMill, iJento, Neoss, Breathing Buildings, Small World and Somo, said: “We are delighted to have invested in Boticca, we believe there is a huge opportunity for them in a fragmented market.
“We have been extremely impressed by Avid and Kiyan, their vision for the business and the culture they have built in the team and are very much looking forward to working with them.”