The newly launched e-commerce site raises $700.000 from Aggregate Media and Chalmers Ventures, among others.
Sportlala is an online shopping club for sporting goods, which means that the customer must become a members and log into shop online, to make purchases.
Sportlala’s lets other sporting goods merchants submit their own products on the site, products they have a tough time selling through their other channels. The items are offered at half price compared to what they would cost in physical stores.
At first glance Sportlala’s business model looks similar to the e-commerce success Fyndiq, but CEO Viktor Sellman does not think they really can be compared.
“First of all, we are selling high-end sporting goods. Second, our business model is centered more around our technology for adding product data on our site”, he says.
The company has developed a system that automates the processes of uploading product data on sites. This, according to Viktor Sellman, means that Sportlala can upload products on the site much faster and have shorter campaigns.
“The only risk for us really is goods being returned.”
After a week or so of taking orders, the next step for the company is to bring in the goods from the merchant, and send it to the customers.
“We are only repacking the products at our warehouse since we only bring in what number of goods was ordered. And since we never risk not selling all of it we can drop the price drastically. The only risk really is goods being returned, since we own the product and handle the purchase”, Viktor Sellman says.
He says that, as much as half of the workforce at other e-commerce companies is used for entering product information manually. Farther down the line, the company will look into selling their product data algorithm to other online stores that does not compete directly with Sportlala.
But, to begin with, Sportlala will start to expand its own core business.
“The money we have raised will be as expansion capital to begin with. We are planning to expand to other markets in Q1 2016. First in Denmark, then Norway and Finland”, Viktor Sellman says.
The Gothenburg-based e-commerce company has raised a total of $700.000.
Norwegian venture capital firm Milla Invest and Chalmers Ventures, which is connected to the university with the same name, are the main investors in this round. Together with these Aggregate Media are also investing but offer media exposure for shares in Sportlala.