How Sneaker Sales Can Make Edited LDN a Billion Dollar Business

Moses Rashid, Founder and CEO of The Edit LDN, is in a hurry. High-end Three years after he launched his sneaker marketplace, Rashid announced today that the company has closed his $4.8 million seed funding round. He expects it to drive even faster growth, with him targeting a $150 million valuation by 2026, and within three years of that he’s targeting $1 billion. I’m here.

“We have focused on providing a premium service to everyone who buys our limited edition sneakers worldwide and delivering this at lightning speed,” Rashid said of the company’s progress. I’m here. This will increase the company’s revenue by more than 500% annually, reaching approximately $12 million by 2022.

Edit LDN specializes in sourcing and selling premium fashion products (limited edition sneakers and other streetwear from designer labels such as Yeezy, Jordan, Louis Vuitton and Dior). Some customers buy products because they want to wear them. The company’s customer base includes a string of celebrities and other wealthy buyers who aspire to be fashion his leaders and trend setters. Others buy as an investment. Resale prices for high-demand sneakers can rise significantly, resulting in substantial profits for owners.

Three years ago, Rashid’s vision was to create an online marketplace to connect this customer base to product providers. Product providers typically sold their merchandise through “drop day” promotions, which restricted access. Until The Edit LDN, potential buyers often missed out on the product they wanted. In many cases, their only option was to buy at high prices on auction sites such as eBay.

Proving the model online, The Edit LDN also has an ever-expanding physical presence. The company opened a concession stand in Harrods in his 2021, and sales exceeded expectations, so the store immediately sought to expand its footprint. Galeries Lafayette concession, which opened in Doha last November, and Edith LDN, Harvey’s Nichols, Riyadh, Saudi Arabia, will also open next month. A US launch is also planned, possibly in New York, Los Angeles, or Las Vegas.

Other recent developments in the business include the launch of a same-day delivery service in its hometown of London. “This is a market where people bought sneakers and waited weeks for them to arrive,” says Rashid. “Now, if you live inside the M25 [the motorway ring road that encircles London], they can be on your feet within 3-4 hours. “

The company is also committed to sustainability. As part of its commitment to a circular economy, the company launched a popular marketplace for second-hand goods in November and is investing in recycling technology that will allow him to recycle 80% of the waste already generated. increase. Externally, the company is focused on removing plastic waste from the oceans, with each customer purchase he promises to remove one kilogram of waste.

Looking ahead, Rashid sees many opportunities to further grow the business. His new two-year global partnership with the world’s largest sports franchise, the Chicago Bulls, is an example of how the company hopes to expand. Selling to sports stars, celebrity endorsements, and marketing collaborations can all drive growth.

But Rashid also believes demand for premium products is growing in segments historically less susceptible to recession. “The limited-edition sneaker market has reached the intersection of fashion and cultural trends and commodities as more buyers view purchases as an investment asset class,” he says. have created collections and found themselves making up to five purchases per month at a regular value of $430 per transaction.”

Edit LDN’s seed round is funding allocated for investment in technology, recruiting, and marketing to help move the business forward in all of these areas. Rashid hopes to double his earnings again in the next year.

The seed round was led by Regah Ventures, an early investor in businesses like Uber, Coinbase and Instacart, and a number of angels with ties to the financial services sector. Investors also include many sports luminaries such as New York Giants captain Xavier McKinney, basketball superstar PJ Tucker, and Premier League footballer Jesse Lingard. .

Regah Ventures CEO Mark Hager believes Rashid’s ambitions to build a billion-dollar business are perfectly realistic. “We support The Edit LDN to become the most disruptive and innovative global marketplace for exclusive sneakers, streetwear and collectibles,” he says. “With its unique market positioning, celebrity endorsement and the strong brand they have built in a short period of time, it is a really exciting business.”