Moses Rashid, founder and CEO of The Edit LDN, is a man in a hurry. Three years after he launched his high-end sneaker marketplace, Rashid is today announcing that the company has closed a $4.8 million seed funding round. He expects that to drive further rapid growth – he is targeting a $150 million valuation by 2026, and $1 billion within three years of that.
“We have been laser focused on providing a premium service and doing this super fast for anyone buying limited edition sneakers globally,” Rashid says of the company’s progress. That has seen the company’s revenues grow at a rate of more than 500% a year – to around $12 million in 2022.
The Edit LDN specialises 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 the goods because they want to wear them; the company’s client base includes a string of celebrities, as well as other affluent buyers, who are keen to be fashion leaders and trend setters. Others buy as an investment; the resale price of in-demand sneakers can increase very significantly, netting a tidy profit for the owner.
Rashid’s vision three years ago was to create an online marketplace to connect this customer base to product providers, which have typically sold their goods through “drop day” promotions that restricted access. Until the arrival of The Edit LDN, potential buyers often missed out on the products they wanted; often, their only option then was to buy at inflated prices on auction sites such as eBay.
Having proved the model online, The Edit LDN is increasingly expanding its physical presence too. It opened a concession space in Harrods in 2021, with sales exceeding expectations to such an extent that the store quickly invited it to increase its footprint. A concession in Galerie Lafayette opened in Doha in November last year and The Edit LDN will also launch in Harvey Nichols in Riyadh, Saudi Arabia next month. Plans are also coming together for launches in the US, potentially in New York, Los Angeles or Las Vegas.
Other recent developments for the business include the launch of a same-day delivery service in its home town of London. “This is a market where people were buying sneakers and then waiting 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 three or four hours.”
The company is also focused on sustainability. It launched a pre-loved marketplace, selling second-hand goods in November, as part of its commitment to the circular economy, and has invested in recycling technology that already enables it to recycle 80% of waste material generated. Externally, the company is focused on removing plastic waste from the oceans, with a commitment to remove a kilogram of waste for each customer purchase.
Looking forward, Rashid sees plenty of potential to grow the business further. A new two-year global partnership with the Chicago Bulls, the world’s largest sports franchise, is one example of how the company expects to expand. Sales to sports stars, celebrity endorsement and marketing collaboration can all drive growth.
But Rashid also sees demand for premium products growing, in a segment that is traditionally less vulnerable to economic setbacks. “The limited edition sneaker market has reached the intersection between a fashion or cultural trend and a commodity as more buyers see purchases as an investment asset class,” he says. “We’re noticing customers are creating collections and making up to five purchases a month at a typical value of $430 per transaction.”
The Edit LDN’s seed round will help the business move forward in all these areas, with the money earmarked for investment in technology, recruitment and marketing. Rashid hopes to double revenues again over the year ahead.
The seed round was led by Regah Ventures, an early investor in businesses including Uber, Coinbase and Instacart, as well as a number of angels with links to the financial services sector. Investors also include a number of sports celebrities, such as New York Giants captain Xavier McKinney, basketball superstar PJ Tucker and Premier League football player Jesse Lingard.
Mark Hager, the CEO of Regah Ventures, believes Rashid’s ambition to build a billion-dollar business is entirely realistic. “We are backing The Edit LDN to be the most disruptive and innovative global marketplace for limited sneakers, streetwear and collectibles,” he says. “With unique market positioning, celebrity endorsements, and the powerful brand they have built in a short space of time, it is a really exciting business.”