Kamil Lovas, Investment Manager at Crowdberry
What is the greatest potential of Footshop? Does the business model help the company in the current situation?
Footshop sets the online shopping trends for running shoes and streetwear in Central Europe. In addition to the designer brick and mortar shops, it is the only vendor to introduce a limited series of products, available only in an amount of thousands of units, to the entire world thanks to its direct relationships with premium manufacturers. Last year its revenues reached about 30 million euros. The stylishly designed flagship shops provide a unique shopping experience and community events organised by the customers and fans complement the local presence of Footshop. The trend toward online shopping continues to grow and is catching up with the West. The coronavirus is accelerating this and contributing to strengthening the market position of digital firms.
How has Footshop attracted investors?
The company operates in e-commerce, which is constantly growing and making room for expansion from Prague to the east and west. E-commerce is an interactive, dynamic form of retail that forms the trends (digitalisation with technological innovations and interactive marketing). Footshop is a love brand for generation Z, and thus an investment in the future of shopping. Thanks to a quality team and founders with a clear vision it is moving forward. It brings innovation to the Internet sales platform, which makes the company a unique partner for global players interested in covering the 160 million population of Central and Eastern Europe. Co-investing alongside one of the most renowned growth investment funds in Central Europe with more than ten years of history brings an investment opportunity in the form of an important capital appreciation.
What do Crowdberry investors bring to the company?
Capital for expansion and the experience of serial investors and businesses in the online segment, which Footshop can then use for further growth. The investment also enables the start of digital innovations with the goal of presenting a new method of purchasing and accelerating the company’s growth. The inclusion of the company in the Crowdberry ecosystem and access to itsmore than three thousand diverse investors opens up opportunities for cooperation and partnerships at home in the Czech Republic, as well as throughout Europe.
The article was written for an investment and business series of the economic daily paper Hospodárske noviny.