The money flood gates opened last year for the online store for cell phones. Revenues grew by 260 percent, and the “King of snus” Jonas Engwall got on board as an investor.
The company was founded back in 2007, but last year was when “things really started to happen” for the company, according to Gustaf Meidner, who founded the company together with Gustaf Werner.
Until January 1st 2015, the company had focused its business on selling cell phones to consumers and small businesses.
“But then we started to contact electronics stores and took on the role as a supplier for them. We have also opened a store of our own in Stockholm which is starting to gain some real traction. It was – in a way – a new beginning for us”, Gustaf Meidner says.
The product line increased from 30 to 300 models, and the goal was to offer the lowest price on every single phone. That gave the company a lot of traffic from price comparison sites like Prisjakt and Pricerunner.
The company’s revenues grew by 260 compared to 2014 and stopped at just north of $12 million (98 million SEK).
Last year, the company also raised venture capital for the first time. Jonas Engwall got on board as an investor, and took over as chairman of the board.
Jonas Engwall is the co-founder of Skruf Snus, the company was then bought by Imperial Tobacco for over $60 million (450 million SEK). After selling his part of Skruf, Jonas Engwall invested in the food company Risenta and the furniture company Svenssons in Lamhult. He also co-founded the sports retailor U-sports which declared bankruptcy in 2013.
Gustaf Meidner does not reveal how much Jonas Engwall has invested, other than it being a “few million SEK”.
“The investment meant that we could by more phones and expand our stock. If we keep holding this tempo we will sell phones for over $30 million (250 million SEK) in 2016. That’s a 1000 percent growth in two years. There are still a lot of things to do. So far, we haven’t done much to be seen or heard”, Gustaf Meidner says.