THE WHAT? South African retailer RunwaySale has received an investment of R100 million from private equity firm SPEAR Capital, according to a report by Business Tech.
THE DETAILS The fashion e-tailer, based in Cape Town, concluded the investment with SPEAR last month.
Karl and Elmien Hammerschmidt, Chief Executive Officer and Chief Operating Officer respectively, are looking to the financial injection to help evolve the company, with the capital being used to drive growth in marketing, stock and production, as well as machine learning and AI technology.
With e-commerce being a booming sales avenue in South Africa, with its growth rate predicated to skyrocket going forward, Karl Hammerschmidt said, “E-commerce accounts for one percent of all retail in South Africa and, even before the coronavirus pandemic, was set to grow exponentially.”
THE WHY? Talking about the investment, Karl Hammerschmidt highlighted the company’s desire to become a leading player within South Africa, with the investment giving it the financial backing to expand its foothold.
He stated, “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.”
RunwaySale advisory board member Christophe Gaigneux continued, “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.”