Verdane Capital invests in Navabi

The secondaries direct specialist deployed an eight-figure euro sum from its ninth vehicle, Verdane Capital IX. The fund closed on its hard-cap of SEK 3bn in July 2016, after four months on the road.

Verdane is taking over all shares of Bauer Venture Partners, while investing an additional higher amount. All other previous investors – including Index Ventures, Seventure Partners and DuMont Venture – remain on board.

Verdane Fund IX will end up with around 29% ownership after the primary and secondary transaction. Verdane will be the single largest investor, though Index, the founders and other investors also have rights, Verdane partner Staffan Mörndal told Unquote.

Verdane had been following Navabi for more than a year and was impressed by the team, its key performance indicators and the company's strategy, Mörndal said. The company was profitable and growing strongly, so with Verdane already invested in around 30 retailers, including several in the fashion industry, the GP felt that it could add value and had a real angle, he added. 

With the fresh capital, Navabi plans to boost sales in the UK and Scandinavia. It also plans to develop its technology, grow its in-house data science and artificial intelligence systems, and use data-driven merchandising to expand its brand range.

According to the investor, the plus-size market is experiencing sustained growth with a 270% increase in Google searches for "plus size" in Europe over the last five years.

Previous funding
DuMont and individual investor Klaus Wecken provided €625,000 in startup capital to the online boutique operator in August 2010, according to Unquote Data. 

Seventure led a €2.8m series-B round of funding in November 2011. Existing shareholders also participated in the round. 

Then in December 2013, Index, Seventure and DuMont backed Navabi in a €10m series-C round. The fresh capital, of which Seventure provided around €2m, was used to expand the firm into the UK and France, and add new brands to the online offering.

Bauer Venture Partners led a €25m series-D funding round in January 2015. Previous investors Index, Seventure, DuMont and Klaus Wecken also participated in the round. Bauer committed both cash and an advertising budget, providing Navabi with access to its portfolio of 600 magazines and 400 digital products.

Company
Founded in 2009, Aachen-based Navabi sells premium plus-size fashion via its e-commerce site. It offers 150 brands including Marina Rinaldi Sport and Levi's. The company also launched its own brands, which account for one third of the company's sales.

It operates in 30 countries and has a further office in the UK, from where it generates 30% of its revenues. Two-thirds of the firm's sales are made in its German home market.

People
Verdane Capital Advisors – Staffan Mörndal (partner).
Navabi – Zahir Dehnadi, Bahman Nedaei (co-founders).

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