Moses Rashid, founder and CEO of The Edit LDN, is a man in a hurry. Three years after launching its high-end sneaker marketplace, Rashid today announced that the company has completed a $4.8 million funding round. He expects this to fuel further rapid growth – he is aiming for a valuation of $150 million by 2026, and $1 billion within three years after that.
“We’ve laser-focused on delivering a top-notch service and doing it super fast for everyone who buys limited edition sneakers worldwide,” Rashid says of the company’s progress. As a result, the company’s revenue has grown by more than 500% per year – to approximately $12 million by 2022.
The 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 the goods because they want to wear them; the company’s customer base includes a range of celebrities, as well as other affluent buyers, eager to be fashion leaders and trendsetters. Others buy as an investment; the resale price of high-demand sneakers can increase significantly, bringing a nice profit to the owner.
Rashid’s vision three years ago was to create an online marketplace to connect this customer base with product providers, who usually 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 high prices on auction sites like eBay.
The Edit LDN has proven the model online and is increasingly expanding its physical presence as well. It opened a concession space in Harrods in 2021, with sales exceeding expectations to such an extent that the store soon invited it to expand its footprint. A concession at Galerie Lafayette opened in Doha last November and The Edit LDN will also launch next month at Harvey Nichols in Riyadh, Saudi Arabia. Plans are also coming together for US launches, possibly in New York, Los Angeles or Las Vegas.
Other recent developments for the company include the launch of a same-day delivery service in its home city of London. “This is a market where people bought sneakers and then waited weeks for them to arrive,” says Rashid. ‘Well, if you live within the M25 [the motorway ring road that encircles London]they can be on their feet in three or four hours.”
The company is also committed to sustainability. It launched a popular second-hand goods marketplace in November as part of its commitment to the circular economy, and has invested in recycling technology that already allows it to recycle 80% of the waste material it generates. Externally, the company is focused on removing plastic waste from the oceans, with a commitment to remove one kilogram of waste for every customer purchase.
Moses Rashid believes his shoe business could generate a billion dollar value
Looking ahead, Rashid sees a lot of potential to further grow the company. A new two-year global partnership with the Chicago Bulls, the world’s largest sports franchise, is an example of how the company expects to expand. Sports star sales, celebrity endorsement, and marketing collaboration can all drive growth.
But Rashid also sees growing demand for premium products 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 view purchases as an investment asset class,” he says. “We’re seeing customers make collections and make up to five purchases per month for an average value of $430 per transaction.”
Edit LDN’s seed round will advance the company in all of these areas, with the money earmarked for technology investments, recruiting and marketing. Rashid hopes to double sales again in the coming year.
The seed round was led by Regah Ventures, an early investor in companies like Uber, Coinbase and Instacart, as well as a number of angels with ties to the financial services industry. 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 that Rashid’s ambition to build a multi-billion dollar company is completely realistic. “We support The Edit LDN to be the most disruptive and innovative global marketplace for limited edition sneakers, streetwear and collectibles,” he says. “With a unique market positioning, celebrity endorsements and the powerful brand they’ve built in a short period of time, it’s really an exciting venture.”
