Fashion Retail Website Modnique acquires TOTSY with simultaneous growth capital financing from Salus Capital Partners
17 Sep 2013
The CatCap’s Globalscope Team has supported Fashion Retail Website Modnique (http://www.modnique.com/) in realizing their growth strategy.
Offering a unique mix of inspiration- and mission-based shopping experiences, Modnique has enjoyed revenue growth in excess of 90% per year since 2011, with an impressive 70% of its revenue coming from repeat clients.
The Globalscope Team advised Modnique and its strategic advisory committee— headed by private equity firm Cyrano Group—in the company’s acquisition of TOTSY and simultaneous growth capital financing from Salus Capital Partners.
Despite the fact that most ecommerce companies forgo international expansion until they have established a successful domestic business, Modnique – a play on “modnik,” the Russian word for fashionista – took the exact opposite approach by launching in multiple countries on Day One. As a result of this unique approach, Modnique quickly established an enviable international footprint, shipping to 157 countries and territories during the first half of 2013 alone.
In addition to geographic expansion, Modnique is extending beyond women’s merchandise and pursuing complementary consumer categories targeting men and children. About 20% of its products are for men and the company recently expanded into the kids’ category with the strategic acquisition of TOTSY, a private-sale site exclusively dedicated to delivering deals on must-haves for parents, babies and kids—the foundation of Modnique Kids, which launched in July.
Modnique launched its first flash sale “event” in February 2010 and has since grown to host more than 400 events per month. The site’s compelling value proposition: connect shoppers with international styles and brands that they wouldn’t otherwise encounter while, conversely, pairing international brands with consumers outside of their primary, full-price markets. Whether the products cost $50 or $500, consumers revel in the substantial discounts they receive. In late 2012, Modnique strategically moved beyond pure flash sales, launching “Shops” (digital storefronts) organized by product category or brand, and having no finite expiration date.
For more information please contact:
Greif & Co.