The designer brand Nanushka announced that it has received a 10 million euros investment from the Swiss investment company SIG-i Capital AG for the brand's new expansion.
SIG-i Capital AG, founded by former executives of the Credit Suisse banking group, is a specialist provider of alternative credit for European SMEs. It offers an alternative to traditional financial instruments, such as Nanushka's choice of mezzanine financing, which combines features of both loan and equity financing.
In a press release issued by the brand, it reads, "On May 4, Nanushka signed a financing agreement with SIG-i Capital AG through the SIG-i EURO MEZZ fund. The transaction includes funds in the form of mezzanine financing worth 10 million euros, and Nanushka has an implied valuation of approximately EUR 100 million." The funds will be used to "refinance the brand's existing debt and provide additional liquidity to accelerate the company's next phase of growth, including expansion in Asia and the US."
Peter Baldaszti, CEO of Nanushka's parent company, Vanguards Group, said, "This is an important milestone for Nanushka and will effectively address our recent supply chain challenges."
Founded in 2006 by Hungarian designer Sandra Sandor, Nanushka has amassed a lot of popularity for its unique design and sustainable philosophy that combines Bauhaus and bohemian spirit.
At first, Nanushka operated only with funds from the founder's family and friends. In 2016, Nanushka's sales reached $1.34 million. In same year, Sandra Sandor's husband, Peter Baldaszti, now the brand's CEO, brought in outside investment with the help of Agoston Gubicza of GB & Partners, Hungary's largest independent private equity and venture capital firm, with funding from the Hungarian government-backed Export-Import Bank.
In 2020, Peter Baldaszti and Agoston Gubicza jointly established the emerging fashion group Vanguards. In addition to the flagship brand Nanushka, it also absorbed two other brands, Aeron from Budapest and Sunnei from Milan.
At present, 70% of Nanushka's sales revenue comes from wholesale channels. It has more than 140 sales outlets around the world. It cooperates with high-end department stores such as offline Le Bon Marché and La Rinascente and through online Farfetch, MyTheresa, Net-a-Porter, and other luxury goods platforms. In addition, the brand is also sold through the official website and offline stores in Budapest, New York, London, Shanghai, and Chengdu.
The brand plans to adjust the proportion of direct sales and wholesale to 50% each in the next 3 to 4 years.