How sneaker sales could make LDN a billion dollar business.

Moses Rashid, founder and CEO of The Edit LDN, is a man in a hurry. Three years after the high-end sneaker hit the marketplace, Rashid is announcing today that the company has closed a $4.8 million seed round. He expects even faster growth — targeting $150 million in revenue by 2026 and $1 billion in three years after that.

“We are laser focused on providing premium service and this ultra-fast, globally limited edition shoe to anyone who buys it,” Rashid said of the company’s growth. That sees the company’s revenue growing more than 500% annually — to around $12 million by 2022.

Edit LDN specializes in sourcing and selling exclusive fashion products – limited edition sneakers and other streetwear from designer labels such as Yeezy, Jordan, Louis Vuitton and Dior. Some customers buy the product because they want to wear it; The company’s customer base includes many celebrities and other wealthy buyers, who want to be fashion leaders and trendsetters. Others buy it as an investment; The resale value of in-demand sneakers can increase significantly, resulting in a net profit for the owner.

Rasheed’s vision three years ago was to create an online marketplace to connect this customer base with product vendors, who sell their wares through “drop day” promotions that typically limit access. Until The Edit LDN came along, potential buyers often missed the products they were looking for. Often, the only option back then was to buy at inflated prices on auction sites like eBay.

After confirming the model online, Edith LDN is also increasing its physical presence. In the year In 2021, he opened a discount location in Harrods, where sales exceeded expectations, prompting the store to expand its footprint. At Galerie Lafayette Accord opened in Doha last year and The Edit LDN will launch next month at Harvey Nichols in Riyadh, Saudi Arabia. Plans are coming together to launch in the US, possibly 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 city of London. “This is a market where people are buying sneakers and waiting weeks for them to arrive,” Rasheed said. Now, if you live in the M25 [the motorway ring road that encircles London]You can be on your feet in three or four hours.

The company is focused on sustainability. It has already launched a popular marketplace, selling second-hand goods in November, as part of its commitment to the circular economy, and has invested in technology that allows 80% of the waste generated to be recycled. Externally, the company is focused on removing plastic waste from the oceans by pledging to remove one kilogram of waste for every customer purchase.

Looking forward, Rasheed sees a lot of potential to further grow the business. A new two-year international partnership with the world’s largest sports franchise, the Chicago Bulls, is one indication of how the company expects to expand. For sports stars, sales, celebrity endorsements and marketing collaborations can all lead to growth.

But Rashid sees growing demand for premium products, in a segment typically vulnerable to economic downturns. “The limited edition sneaker market has reached the intersection between a fashion or cultural trend and a commodity, as many buyers view purchases as part of an investment property,” he says. “We’re seeing customers creating bundles and making up to five purchases a month for $430 per transaction.”

Edit LDN’s seed round will help the business move forward with investments in technology, recruiting and marketing. Rashid hopes to double revenue again next year.

The seed round was led by Reggah Ventures, an early investor in businesses including Uber, Coinbase and Instacart, as well as several angels with ties to the financial services sector. Investors include several sports celebrities such as New York Giants captain Xavier McKinney, basketball superstar PJ Tucker and Premier League soccer player Jesse Lingard.

Mark Hager, CEO of Regah Ventures, believes that Rasheed’s desire to build a billion-dollar business is fully realized. “We’re supporting Edit LDN to be the most disruptive and innovative global marketplace for exclusive sneakers, streetwear and collectibles,” he says. “It’s an exciting business with a unique market position, celebrity endorsements and a powerful brand they’ve built in a short period of time.”