British-based online sneaker marketplace The Edit LDN raised $4.8 million in seed funding to accelerate growth into the U.S. and globally.
The Edit LDN was founded in January 2020 by Moses Rashid in his spare bedroom, out of a pure passion and love for sneakers, and within just two years, he grew the business into a multi-million dollar business.
Exploring an opportunity in the luxury sneaker space, The Edit LDN developed proprietary technology facilitating a global marketplace with a focus on speed, efficiency and experience.
In its funding announcement, the company said it offers the ability for a Same Day Service, through to storage facilities for Resellers, as well as a proactive seller service through its Personal Shopping team.
The core business has been in the UK, but the business has quietly reached higher-end clients in the U.S. and globally by building a solid reputation.
Although last year the company did sign a two-year global partnership agreement with the Chicago Bulls, signaling its seriousness of partnering with iconic globally recognized American sports brands to market its luxury marketplace around the world.
In addition, The Edit LDN took advantage of the 2022 FIFA World Cup in Qatar last November by opening new concession spaces in the Galeries Lafayette in Doha.
This is one of its unique aspects as it also operates physical locations inside luxury retailers or retail spaces.
In 2021, the company opened its first location inside one of the world’s leading luxury department stores, Harrods in London. And next month, The Edit LDN plans to open a new location inside Harvey Nichols in Riyadh, Saudi Arabia.
This seed funding will give the company the resources to expand its business globally as it focuses on the U.S. and the MENA (Middle East, North Africa) markets.
The Edit LDN – Another Sneaker Marketplace?
While Moses Rashid said he saw an opportunity in the luxury sneaker market, the fact is, that market already has some significant players with GOAT, StockX, and more recently, eBay.
However, The Edit LDN’s technology and business model focuses on speed, something other online marketplace lack in the authentication process.
This differentiator seems to have made a difference already as the company has seen revenue growth of 500%+ year-on-year.
“We have been laser focussed on providing a premium service and doing this super fast to anyone buying limited edition sneakers globally,” said Moses Rashid, CEO at The Edit LDN.
“This was an unmet need in the sneaker community and our growth success is testament to how we are conquering this.”
“Having built relationships with brands, celebrities and consigners, we can secure the most sought after products by clients.
“Our robust authentication process and detailed supply chains has helped to grow trust and love for the brand – we will double down on our tech stack to ensure we are ahead of the curve to source, offer and send the latest sneakers to anyone, anywhere in the world quickly.”
While Same-Day delivery will not be possible in overseas markets yet, the company believes express shipping services can connect sellers and buyers at speed globally, giving them an edge over its competitors.
On its website, the company says that, on average, authentication will take about 3 to 5 days, and most items can be delivered outside the UK within 1-2 days via DHL Express.
In 2023, the company plans to introduce same-day delivery service in five new countries, which will likely be highly regional as in the UK.
Currently, same-day delivery is available inside the M25 Motorway, which encircles London. In the United States, major luxury markets could include New York, Los Angeles, Miami, Dallas, and Chicago, but the company has not made an announcement yet on where it might launch its next physical location beyond Riyadh, Saudi Arabia.
The Edit LDN is another sneaker marketplace but is taking a slightly different approach by focusing on the purchasing power of high-end clients, including music stars and sports superstars.
As a matter of fact, New York Giants Captain Xavier McKinney, NBA superstar PJ Tucker and Premier League soccer player Jesse Lingard are all part of the Regah Ventures (early investors to Uber, Coinbase and Instacart) led seed funding round.
“We are backing The Edit LDN to be the most disruptive and innovative global marketplace for limited sneakers, streetwear and collectibles,” said Mark Hager, CEO at Regah Ventures.
“With unique market positioning, celebrity endorsements, and the powerful brand they have built in a short space of time, it is a really exciting business.
“We have every confidence in Moses [Rashid] and the wider management team to turn this into a $1 billion+ business quickly, and we at Regah Ventures are delighted to be a part of the journey.”
Looking ahead, Rashid added, “The limited edition sneaker market has reached the intersection between a fashion or cultural trend and a commodity as more buyers see purchases as an investment asset class.
“We’re noticing customers are creating collections and making up to 5 purchases a month at a typical value of $430 per transaction.”
That is a high-value buyer with disposable income. And despite the current economic conditions, luxury is a good business segment to be in right now.
Buyers of these cars have unique expectations. Existing marketplaces for sneakers and limited-edition fashion don’t necessarily cater to this type of consumer well, which is the opportunity The Edit LDN is trying to capture.
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