HAMBURG – German fashion tech start-up, About You, has been valued at more than US$1bn after a new round of financing attracted US$300 of investment. With more than ten million monthly users, About You is one of the largest fashion and lifestyle platforms in Europe. The business, a subsidiary of the Otto Group which was established in 2014, has made sales of €283m in 2017/18 and is expecting sales of €450-480m in the current financial year, which is equal to an annual transaction volume of more than €1.6bn.
Heartland A/S, the investment holding company of one of Europe’s largest fashion retail groups, Bestseller, has joined About You as a new investor as part of a financing round of around US$300m. Heartland now has a double-digit stake in the business, with existing shareholders German Media Pool and Seven Ventures, along with the three About You managing directors Tarek Müller, Sebastian Betz and Hannes Wiese, also participating in the capital increase. Otto Group remains as largest shareholder, however, going forward About You will be managed as an Otto Group portfolio company.
About You said it plans to use the fresh capital to fund future growth and the expansion into new markets.
Tarek Müller, co-founder, said: “We are delighted that Heartland A/S has come on board and at the confidence they have shown in us. This investment gives us a unique opportunity to accelerate our efforts to grow our customer base, to gain greater market share and to enter new markets even more rapidly than before. At the same time, we plan to double our current workforce of 450 here in Hamburg over the next three years.”
Lise Kaae, CEO Heartland said: “We have followed About You closely over the past few years, and we see a company with sound leadership and solid potential. The current management team has done a great job, and we enter into the investment with confidence that they can develop the company even further.
Alexander Birken, CEO Otto Group added: “In line with our collaborative group strategy, we are pleased to have found the perfect partner for the further growth of About You. About You will benefit enormously from this investment on its way to achieving its own very ambitious corporate objectives.”
Aimed at men and women aged 20 through 49, aboutyou.com and the About You mobile app contain a selection of over 150,000 products from more than 1,000 brands. These include the retailer’s own brand, EDITED the label, which offers a range comprising fashion, accessories, and footwear for fashion-conscious women at its online store of the same name, edited.de.