German online retailer Lesara announced a $7 million Series A lead by Mangrove Capital from Luxemburg. US-based Funderguild, Fabrice Grinda and previous investors including Partech Ventures, KupiVP founder Oskar Hartmann, Marafoni founder Sina Afra and others joined the round.
Founded in 2013, serial entrepreneur Roman Kirsch wants to make Lesara the largest pan-european online budget retailer. The team grew to now 60 people.
Kirsch has previously founded Casacanda which was acquired by Fab.com at an about $10 Million valuation in February 2012.
While others operate as marketplaces, Lesara is a fully-fledged retailer with its own supply chain with it’s own operations, the company states. It’s goal is to connect merchants and manufacturers from countries as China and Turkey with European customers that look for deep discounts. Lesara provides these in areas of fashion, jewelry and home.
“left”]Within 10 month, over 100,000 customers shopped on the site and the revenue from repeat buyers is at over 50% according to the company. Lesara expects to receive a double digit million dollar revenue in its first full year of operations.
In order to get there, Lesara is works with big data and algorithms to offer customers fitting products.
“Our team operates like a fast fashion retailer – but with more data points,” says Kirsch. “Our technology is analyzing what kind of styles and products are selling best or get shared relatively often on other sites. We then work closely with our manufacturers to get similar merchandise for better price points on our platform only some days later.“
Until now, the online retailer operates in Germany, Austria and Luxemburg. The $7 million funding will be used to not only expand to more countries, but also to development of its logistics infrastructure.
David Waroquier, Partner at Mangrove Capital, states that other to most online fashion retailers like Brands4Friends and KupiVIP where Mangrove invested as well, Lesara focusses on non-branded products. That would not only address a larger market, but also leave a lot of space for “impressive gross margins” and leave space for exclusive deals with manufacturers. “We are also happy to have the opportunity to back Roman Kirsch, one of the most promising German e-commerce entrepreneurs and we are confident that he and his team will continue to turn Lesara into a challenger to the C&As and Primarks of this world,” he added.