South African Fashion Retailer, RunwaySale, Secures A $5.74 Million Investment From SPEAR Capital
RunwaySale, a leading online fashion retailer in South Africa just received an investment of R100 million which is equivalent to 5.74 million US Dollars, from SPEAR Capital which is a private equity company making an impact in South Africa.
Located in Harare and Cape Town, SPEAR Capital has the mission of providing growth capital through equity investments to small and medium enterprises in Southern Africa that are focused on fast-moving consumer goods or local manufacturing and processing. They have invested in companies like Metro Commodities, which is Zimbabwe's largest wholesaler, Polymer, a South African ink manufacturer, therefore, investing in RunwaySale which is the biggest South African online shopping society, was in line with their mission and investment strategy.
"The synergies between the SPEAR Capital team and our own gives us the confidence and practical support we need to develop RunwaySale into a leading player in the local and regional e-commerce market." - Karl Hammerschmidt.
RunwaySale was founded in 2012 by Karl and Elmien Hammerschmidt with the aim of connecting exclusive buyers to high-end fashion brands at a discounted price. The buyers are exclusive such that a membership account must be opened by intending buyers before they will be able to purchase goods. They conduct flash sales that last for a limited time to offer high-end fashion products to their members at a much more discounted rate. Their members are notified through their social media pages, as well as their emails when a sale is about to commence.
"E-commerce accounts for one percent of all retail in South Africa and even before the coronavirus pandemic, was set to grow exponentially." - Karl Hammerschmidt.
The payment method is SSL secure and verified through 3D secure. What this means is that this technology protects transactions between the website and the buyers, so RunwaySale does not have access to buyers' credit card information and all the credit card details are encrypted. As Christophe Gaigneux who is now on the RunwaySale advisory board added,
“The potential for e-commerce to contribute meaningfully to the local economy has never been greater and RunwaySale will be key to meeting the demand we know is building up in consumers across all demographics in South Africa.”
Through this investment with SPEAR Capital which was concluded in April, RunwaySale has the plan of driving an all-round growth across marketing, stock, and production sectors, as well as in machine learning and artificial intelligence technology.