Notonthehighstreet.com raises 21 million pounds investment

Online marketplace Notonthehighstreet.com, known for selling quirky gifts and products from small, creative, independent businesses, has raised 21 million pounds, bringing total investment in the company up to around 60 million pounds.

The Series E funding round was led by German publisher Hubert Burda Media, with additional support from existing investors including Index Ventures, Industry Ventures, and Eight Roads Ventures.

The investment it states will help the business “accelerate its ambitious strategy for long-term growth”, and comes on the back of a 19 percent growth in year-on-year sales at Notonthehighstreet.com, its tenth consecutive year of double-digit growth.

It will use the funds to invest in the technology, innovation, marketing and operations that allow the company’s 5,000 strong and growing Partner (seller) community to connect with more customers and scale their businesses using Notonthehighstreet.com’s technology platform, while continuing to build Notonthehighstreet.com’s core gifting offer, expanding categories and developing the customer experience both on and offline, and open up Partners’ access to new markets, and build the business’ international vision.

Notonthehighstreet.com chief executive Simon Belsham said: ”Notonthehighstreet.com was born out of the belief that customers want products that are more thoughtful, unique and personal and that, through technology, we could connect thousands of independent businesses – the makers of these great products - with customers around the world. This purpose remains even more relevant today in a world where customers are craving something more than the ubiquity of the mass market.

"Finding an investor that shared our vision and could provide strategic support, as well as new funds to support our multi-year growth plan, was key. Burda has a longstanding reputation as an investor in cutting-edge consumer and technology businesses and an international reach that will help us accelerate the potential we see both at home and overseas.”

Notonthehighstreet.com raises funds to accelerate growth

Burda Principal Investments, managing director Martin Weiss added: “Notonthehighstreet.com has built up a very successful Ecommerce business beyond the classic retail model that fits very well with our portfolio. We see significant growth potential for this unique business, both in and outside the UK, making it an obvious partner for us as we continue to grow our portfolio of consumer and technology brands internationally.”

Hubert Burda Media currently holds a portfolio of consumer-related digital businesses and has a track record investing in entrepreneurial companies. Current investments include XING, the number one business network in Germany and Europe. Burda is also behind one of Europe’s biggest and most influential digital and innovation conferences, DLD (Digital Life Design) and publishes a number of key media titles including Wedding and Your Home in the UK, as well as Elle, Elle Decoration, and InStyle in Germany.

The investment comes as Notonthehighstreet.com reports its sales for the 12 months to 31 March 2016 were up 19 percent, with underlying EBITDA loss of 1.6 million pounds compared to an EBITDA loss of 3 million pounds for the same period for the previous year.

The last 12 months has also seen the online marketplace bolster its senior management with appointments including chief executive Simon Belsham from Tesco, chairman Darren Shapland, chief financial officer, David Phillips, and Hannah Webley-Smith customer director.

Belsham added: “It has been an incredibly exciting 12 months for Notonthehighstreet.com, marked not only by this new investment but another year of strong growth and several significant senior hires that put strong foundations in place for continued success.”

Image: Notonthehighstreet.com website