Summit Partners invest 25 million in The Iconic

The fashion start-up has announced that it has secured 25 million Australian dollars from Summit Partners. This injection of capital comes after JP Morgan invested another 25 million in September. “The investment of Summit Partners makes

 us proud and reinforces our strong belief in the future of the Australian e-commerce sector. Summit has extensive experience in supporting fast-growing companies which will be of huge benefit as we continue to build out our offering and services to win the Australian and New Zealand market,” commented Finn Haensel, MD and co-founder of The Iconic.

Scott Collins, a Managing Director and head of the Summit Partners London office, added “We seek to invest in companies that build long-term value, and The Iconic has shown dynamic growth in a short period of time. We are thrilled to support The Iconic story and participate in Australian online retail.”

As reported by ‘The Australian Financial Review’, the new deal is the third international investment for the online retailer and will provide working capital for new stock as well as website improvement.

The Iconic has turned into one of the fastest growing Australian retailers, with sales increasing around a 20 percent on a monthly basis since it was first launched over a year ago. Founders of the site assure the website is recording 180,000 visitors a day, figure that rocketed in Christmas to 300,000 visitors per day.

Despite the actual size of the stake Summit Partners has taken in The Iconic remains private, the fashion e-tailer has said that it is "a significant stake which is close to being a majority stake".

The Iconic belongs to the hundred of start-ups funded by Rocket Internet, which launched other fashion ventures such as Zalando.

"We actually had already secured funding for our growth plans even before the investment, but we were funded for a relatively conservative growth plan and now we can invest more in buying stock and doing customer acquisitions," Haense said.