German online fashion platform BestSecret to IPO next year

The IPO plan could value BestSecret at more than 3 billion euros , and the company hopes to use the funds raised to expand internationally.

BestSecret is an online fashion platform based in Munich, Germany , which offers high-end brands such as Dior, Armani and Puma at discounted prices. In order to be able to shop on the platform, customers must become members , and so far, 1 million users have signed up.

Not limited to the local German market, the company is active throughout Europe, with most of its revenue coming from online sales, though some products are also sold in offline stores in Munich, Frankfurt and Vienna . As the pandemic has boosted the entire e-commerce industry , the platform's sales have also grown exponentially. Total sales are expected to reach around 800 million euros this year , a 40% increase over last year.

The company also expects earnings before interest, taxes, depreciation and amortization (EBITDA) to reach 135 million euros this year , an increase of about 25%. It expects its profits to grow by more than 160 million euros by 2022.

In 2016, BestSecret's parent company Schusterman & Borenstein was acquired by financial investment company Permira at a valuation of 730 million euros. Now Permira hopes to sell part of its 80% stake in BestSecret. Permira's CEO said an initial public offering is expected in the summer of 2022.

Other German platforms such as Zalando, MyTheresa and About You , as well as global rivals such as Revolve, Farfetch, Bohoo, Next and Asos , trade at an average multiple of around 25 times expected 2022 Ebitda. A similar valuation would value BestSecret at nearly 4 billion euros.

However, how many investors are actually willing to pay for BestSecret at the time of the IPO remains to be seen , and will depend on how the company continues to grow and how its competitors are rated at the time. The IPO will inject capital into the company's further international expansion.

With the development of e-commerce, not only have giant platforms such as Amazon grown rapidly, but many local European platforms have also raised funds and gone public. Many of them are forces that should not be underestimated, and can also serve as a reference for sellers' multi-platform layout.

IPO

BestSecret

Germany