German online retailer Lesara scores €5.55mn funding
Lesara announced a €5.55 million Series A funding, led by Mangrove Capital from Luxemburg. Funderguild, Fabrice Grinda and previous investors like Partech Ventures also joined the round. The fresh funding will be used to expand to more countries, and to further develop its logistics infrastructure. Eventually, Lesara’s founder Roman Kirsch wants to turn the German website into the largest pan-European online budget retailer.
Kirsch previously founded Casacanda, an online shopping club that got acquired by Fab for about 8.72 million euros in February 2012. Lesara was founded in 2013 and has its own supply chain and operations. Its goal is to connect merchants and manufacturers from countries as China and Turkey with European customers who are looking for deep discounts, as Gründerszene writes. The German online retailer sells fashion, jewelry, home products, consumer electronics, gadgets and lifestyle products.
Similar merchandise for a better price
According to Kirsch, his team operates like a fast fashion retailer “but with more data points”. The technology behind Lesara analyzes 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 a better price on our platform only some days later.”
“By focusing on private-label products and exclusive collaboration with producers, Lesara is able to achieve impressive margins”, says David Warouqier, partner at Mangrove Capital. We also look forward to support Roman Kirsch and his team into making Lesaro a challenger to the C&A’s and Tchibo’s of this world,” he added.
Within ten months, over 100,000 customers shopped on the German site and repeat buyers now account for over half of the company’s revenue. It’s expected to reach a double-digit million dollar revenue in its first full year of operations. Lesara operates in Germany, Austria and Luxemburg.
An interview from Entrepreneurial Insights with Roman Kirsch: