Gothenburg-headquartered e-commerce company NA-KD.com, which launched just a year ago, has raised 140 million Swedish crowns (14 million euros) to boost its global growth from venture capital firms Northzone and eEquity.
NA-KD was founded in April 2015 and operates in the global market for fast fashion, primarily online, but also through pop-up shops. The capital will primarily be used to improve the customer experience, offer a broader inventory, and marketing.
“Our main focus for 2017 and beyond will be on NA-KD as a brand and store, as this part of the business generates the majority of our revenue, showing strong growth and good margins. With Northzone and eEquity on board, together with our business angels, we are well equipped for our next phase of international expansion,” NA-KD Chairman and third largest owner, Magnus Emilson, said in a statement.
The website had 15 million visitors in 2016. The brand is one of the fastest growing in social media, and has 750,000 followers from 150 countries.
“In our first year of operation, we’ve already had a lot of inbound interest from venture capital firms in the Nordics, Europe and the USA. This is a result of our fast global traction, which has been the engine to our growth. For us, it’s important that our investors share our global view, and have a capacity that matches our ambitions over the coming years,” said founder and CEO Jarno Vanhatapio. NA-KD is Vanhatapio’s third e-commerce company, having founded Nelly.com (2003) and Zoozoo.com (2013).
The company has annual net revenues of 22 million euros, and the majority of sales already happen outside of the Nordics. These global ambitions attracted the venture capital firms.
“NA-KD has achieved exceptional growth since the launch in 2015, and we are impressed by their ability to establish a global customer base, and a strong brand, through a combination of e-commerce and social media,” said Jessica Nilsson, Partner at Northzone.