London-based luxury sneaker retailer Kick Game has secured 3.5 million pounds of fresh funding from growth capital firm VGC Partners as it eyes revenue of 50 million pounds in 2022.
The company said it will use the funding to accelerate the expansion of both its online operations and physical store estate, with additional stores planned for the UK and abroad over the next two years.
Founded in 2013 by sneakerhead brothers Robert and David Franks, Kick Game has tapped into the fast-growing streetwear market and the high demand for exclusive, rare and sold-out sneakers.
The retailer sells footwear from brands including Jordan, Nike, Yeezy, Off-White, Trapstar, Fear of God Essentials and Supreme. While it specialises in sneakers, the company also carries apparel.
“The sneaker market is one of the fastest-growing unregulated markets in the world and we intend to match its pace,” co-founder and chief operating officer Robert Franks said in a statement.
It follows an initial investment of 2.5 million pounds by VGC Partners in May 2020, and comes as Kick Game continues to expand its operations amid surging sales.
Revenue at the retailer jumped from 4.8 million pounds in FY20 to a projected 20 million pounds in the 12 months to November 30.
Based on its current performance, the company is now eyeing sales of 50 million pounds by FY22.
“Since VGC’s initial investment we’ve demonstrated our commitment to and belief in the UK high street, by opening three new experiential stores. We’ve also significantly grown our team and have expanded our warehousing capabilities overseas - and this is just the beginning,” Franks said.
In the past year, Kick Game has grown its team from seven to 55, with 25 employees based across three new stores in Burlington Arcade, Mayfair, Covent Garden and Birmingham’s Bullring.
The company paused its European operations in January due to the impact of import duty on its customers, but has since opened a warehouse in the Netherlands as it eyes further expansion, with a particular focus on the Scandinavian market which is its biggest outside the UK.
Parminder Basran, managing partner at VGC Partners and non-executive director at Kick Game, said: “It is clear to see the luxury resale market is dominating and continues to attract more interest from consumers and investors alike, with the sneaker resale market predicted to reach 30 billion dollars by 2030.”