Axel Arigato gets funding from ex-Farfetch investor Eurazeo
Fresh from selling its stake in Farfetch, private equity firm Eurazeo has announced an investment in Axel Arigato, the Swedish premium sneaker, ready-to-wear and accessories brand.
The move comes as the investor seeks to make the most of trends towards more casual shoes and clothing, as well as the strength of the premium segment.
The Eurazeo Brands division that focuses on consumer labels is investing €56 million to become a majority shareholder, alongside founders Max Svärdh and Albin Johansson. It had held Farfetch shares through its Eurazeo Growth unit.
Eurazeo said the major new investment “highlights its transatlantic ambition and coverage”.
Founded in 2014 in Gothenburg, Axel Arigato is described as “a high-growth, digitally-native company that has quickly become a leading player in the European premium sneaker market. The company's main objective is to embrace the now and always look for the tomorrow, with strong cultural references including music, art and architecture”.
Eurazeo added that “as a result of its differentiated value proposition relying on minimalist and modern design, superior quality and a sustainable approach, the brand's revenues have almost tripled since 2016”.
And it said the “large community that stands behind the brand is highly engaged thanks to the company's event-driven marketing strategy, its ‘drop of the week’ model and unique online content”.
The brand’s products are distributed worldwide through its webstore, as well as via major luxury e-tailers like Farfetch, MyTheresa and Ssense. There are also six Axel Arigato retail stores with its only non-Swedish directly operated physical store being in London on Broadwick Street in the West End. Prestige department stores such as Le Bon Marché, Harrods and Saks Fifth Avenue also stock the label.
So what happens now? “Leveraging its proven brand-building, operating and consumer expertise, Eurazeo Brands will partner with Axel Arigato to support its growth, in Europe in particular, by investing in its digital and e-commerce capabilities, developing its retail footprint in major European cities and enhancing the brand's sustainability positioning,” the companies said. “In addition, Eurazeo will provide its CSR expertise and international network throughout Europe, Asia and the United States to support the brand's development in key markets”.
Jill Granoff, CEO of Eurazeo Brands, said: “We have targeted the high-end sneaker market due to the premiumisation and casualisation trends we are seeing globally and believe Axel Arigato is an innovative and high-potential brand in this sector, relying on an authentic and contemporary designer-based approach.”
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