Roman Kirsch, CEO and founder of German fashion website Lesara, says he’s very happy with the deal with Swedish VC-firm Northzone. He says he feels that Scandinavians have a different mindset compared to both Anglo-saxon investors and Central European investors.
“I believe that Scandinavian investors in general are more focused on global expansion than other European investors. Maybe it’s because of their small domestic markets. They also have more concern for the social situation and the employees than Anglo-saxon investors, so for us it’s the perfect mix”, he says.
The e-commerce company is taking major steps in the so called fast fashion industry. Fast fashion means low prices and constant new lines of clothing based on the latest trends. The company is more of a trend follower rather than trend setter, but that doesn’t bother Roman Kirsch.
“Sure we miss out on the early adopters of new trends, but the demand is shaped like a bell curve. You have relatively few early adopters, or trend stetters, and relatively few late adopters. Most customers are in the middle and are happy with the speed at which we can deliver clothes that they like”, he says.
According to Roman Kirsch it takes traditional fashion companies up to six months to get from observing a trend to getting clothes out to the stores. For Lesara, it’s often less than a month. The reason behind the higher speed more direct contact with manufacturers and a more data driven decision making.
“We have algorithms that look for the latest trends on social media sites like Pinterest and Facebook and that helps us decide what our next lines should be”, Kirsch says.
He claims that about 85 per cent of Lesaras customers buy something from from the website at least twice and that 50 per cent of the revenue comes from returning customers.
The newly raised cash will be used for, among other things, expansion to more countries.
“Right now we’re focusing on two more european countries and delivering the service in two more languages. Expansion beyond Europe is definitely a part of our long term strategy, but not right now”, Kirsch says.
Vorwerk Ventures and Mangrove Capital also participated in the round.