Online gifts retailer notonthehighstreet has been acquired by US growth equity firm Great Hill Partners for an undisclosed sum. The new owner will become the majority shareholder, alongside existing investors Burda Principal Investments and Industry Ventures.
The sale follows a year of unprecedented growth for the company, in which revenues rose more than 50 per cent and it grew its customer base by almost a million (to 3.6 million). It also added four times as many small business owners to its marketplace than the prior year. Over 5,000 independent artisans, designers and boutiques now sell their personalised gifts via the site.
In a statement released today, notonthehighstreet said that the backing and expertise of this new investor base will further advance its growth – enabling it to expand its reach in the UK’s small business community, and develop and diversify its range of products to meet growing customer demand for categories like homeware, garden ware and food and drink (which saw combined sales double last year).
Claire Davenport, CEO of notonthehighstreet, said: “notonthehighstreet has been the online home of the UK’s best creative small businesses since 2006, and business has boomed for our marketplace in the past 12 months. With more people shopping online and choosing to support small businesses than ever before, notonthehighstreet has become a go-to platform for people across the UK who are seeking unique ways to improve their home environment, discover new ways to spend their time and find thoughtful ways to stay connected with loved ones.
“We’re incredibly grateful to our founders and past shareholders for all they’ve done for the business to date, and we are delighted to work with digital growth experts Great Hill Partners, Burda and Industry for the next exciting stage of our growth. Each brings considerable expertise that will help us to build on the success we’ve seen so far.”
Great Hill has actively invested across the digital commerce landscape for nearly twenty years. Other firms it has backed include home furnishings retailer Wayfair, Momondo Group, and The RealReal.
Peter Garran, partner at Great Hill Partners, said: “Since its founding, notonthehighstreet has become the leading UK destination for unique products and gifts, with a stellar group of small business Partners and an extremely loyal customer base. We are excited to work with Claire and notonthehighstreet’s talented team, leveraging Great Hill’s experience in helping scale leading digital marketplace companies.”
Michael Kumin, Great Hill Partners’ managing partner, added: “While e-commerce adoption has accelerated over the last twelve months, notonthehighstreet’s focus on curating products from the UK’s best small businesses has enabled the company to stand out. We are excited to help the company build upon its current momentum and expand the notonthehighstreet online marketplace to a growing number of UK consumers and small business Partners.”
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