PE-backed Navabi to be acquired by founders

Verdane confirmed that Navabi's founders are buying back stock from Verdane, but declined to comment further.

Navabi has now applied for restructuring proceedings, prompted by revenue losses of around 70% during the coronavirus pandemic.

The company's external investors currently own 92% of the business following a series of funding rounds that began in 2010.

Previous funding
Navabi received its first external investment when DuMont and business angel Klaus Wecken committed €625,000 to the business.

In November 2011, Seventure led a €2.8m series-B funding round for Navabi, joined by existing investors.

New investor Index Ventures backed Navabi in a €10m series-C round, along with Seventure and DuMont. Seventure provided a commitment of around €2m, according to Unquote Data.

Bauer Venture Partners, the venture arm of Bauer Media Group, led a €25m series-D funding round for Navabi in January 2015. Also participating were Index, Seventure, DuMont and Klaus Wecken.

Verdane invested in Navabi via Verdane Capital IX in March 2018, making it the largest investor in the company with a 29% stake. The firm was joined by Navabi's existing investors. Verdane's investment was structured as both a primary and secondary deal; the GP also acquired a portfolio of three companies from Bauer, which included its stake in Navabi.

Seventure backed a further funding round for Navabi in July 2019.

Company
Founded in 2009, Navabi is an online retailer selling plus-size women's clothing, selling fashion items from a range of designers, as well as under its own brand. The company is based in Cologne, Germany, but also operates in London and delivers to customers across Europe. It reported revenues of around €30m in 2019 and employs 80 staff, according to LinkedIn.

The company stated in its financial records for 2018, filed in March 2020, that it had seen revenue growth of 15% in 2018 compared with 2017, but added that the effects of the coronavirus pandemic on its financial situation would be difficult to predict and that it was holding talks with its banks and shareholders in case bridge financing was needed to support the business.

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• Topics
• Exits
• DACH
• Consumer
• Germany
• Index Ventures
• Seventure (SPEF)
• Verdane Capital Partners