Curated Shopping Group, a Berlin, Germany-based online menswear retailer that works with a stylist network, has raised $5.28 million in an equity funding round.
The round was led by Berlin-based investment company Auden AG, who will be taking a 10.2 percent stake in the company. The ownership stake is being acquired against a direct capital investment of $4.23 million in parallel with the conversion of a loan in the amount of $1.1 million given to Curated Shopping Group in November 2016, FinSMEs reports.
“We see curated, stylist-assisted shopping as one of the most exciting e-commerce market segments to be found anywhere because high customer loyalty and per-customer revenue mean that margins are not only robust but also consistently and thus predictably so,” Christofer Radic, CEO of Auden AG, said in a statement.
Curated Shopping Group owns MODOMOTO, which operates in Germany, Austria and Switzerland and The Cloakroom, which operates in the Netherlands, Denmark, Sweden and Belgium. The two sites offer similar e-commerce experiences. They use stylists’ expertise to offer curated selections of clothing.
Curated Shopping Group acquired former competitor, Amsterdam-based The Cloakroom, last year. The Cloakroom was founded by Kasper Brandi Peterson and Asbjørn Jørgensen in 2013. MODOMOTO was founded by Corinna Powalla and Mathia Fiedler in 2011.
CSG now has a team of 250 employees between Berlin and Amsterdam, and a logistics center in Berlin. The company has offerings from a variety of sources, from small, local designers, to major international brands.
CSG executives said they will use the new investment to boost expansion and growth. The support of Auden AG will help Curated Shopping Group build on its seven countries of operation by expanding in Europe and achieving deeper market penetration in Germany, according to CSG executives.