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Bestseller invests in Germany's About You
Bestseller, via the family holding company of its founder, Anders Holch Povlsen, has invested in e-commerce site About You.
Based in Hamburg, the German company forms part of the Otto Group, and has proven to be very successful since its inception in 2014. The financial firm run by Anders Holch Povlsen, Heartland, will invest 300 million euros into the online company. Heartland allows the founder separate Bestseller's activities and that of its different holdings into various firms.
The holding takes place in the form of a capital increase, and thanks to its investment, Heartland will acquire a major stake (a double-digit percentage) in About You. The remaining capital will serve support to development of the e-commerce site's platform.
Since its debut, About You has caused ripples in the e-commerce waters in Germany. For the fiscal 2018-19 year, the firm expects revenues to rise from 283 to 480 million euros. The company value is estimated to be some $1 billion, in what would make it the first 'unicorn' start-up in Hamburg. Currently, About You, which is only in German, sells fashion and sportswear for men, women and children, across a variety of brands, including Bestseller group labels.
About You's directors, Tarek Müller, Hannes Wiese and Sebastian Betz, as well as their stakeholders German Media Pool and Seven Ventures, are also taking part in the capital increase.
"We are delighted by the capital investment from Heartland AS, and the confidence that it has shown us. This partnership will allow us to grow our client base, increase our market share and enter new markets," said Tarek Müller, co-founder and director of About You.
The number of employees, currently 450 in Hamburg's centre, should double over the next few years, thanks to its solid expansion plans.
The founder of the Danish group Bestseller has already invested in other fashion companies, such as Zalando and Asos.
Bestseller markets several brands such as Vero Moda, Vila and Jack & Jones, and earns about 3 billion euros a year.
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