Moses Rashid, founder and CEO of The Edit LDN, is a man in a hurry. Three years after launching into the high-end sneaker market, Rashid announced today that the company has closed a $4.8 million seed round. He expects this to fuel further rapid growth — he’s targeting a $150 million valuation by 2026 and $1 billion within three years.
“We’ve been focused on delivering a premium service to anyone around the world who buys a limited-edition sneaker, and doing so super-fast,” Rashid said of the company’s progress. That has allowed the company’s revenue to grow by more than 500% annually — to about $12 million by 2022.
The Edit LDN specializes in sourcing and selling quality fashion – limited edition sneakers and other streetwear from designer labels like Yeezy, Jordan, Louis Vuitton and Dior. Some customers buy because they want to wear them; the company’s client base includes a string of celebrities and other wealthy buyers who aspire to be fashion leaders and trendsetters. Others buy it as an investment; the resale price of a hot-selling sneaker can rise significantly, turning a tidy profit for the owner.
Rashid’s vision three years ago was to create an online marketplace that would connect this customer base with product suppliers, who typically sell their wares through limited-access “drop day” promotions. Before The Edit LDN, potential buyers often missed out on products they wanted; often, their only option at the time was to buy them at a premium on auction sites like eBay.
After validating the model online, The Edit LDN is also increasingly expanding its physical presence. It opened a concession space in Harrods in 2021, and sales exceeded expectations, so much so that the store quickly invited it to increase its footprint. The Galeries Lafayette franchise opened in Doha last November and The Edit LDN will open next month at Harvey Nichols in Riyadh, Saudi Arabia. A U.S. launch is also planned, possibly in New York, Los Angeles, or Las Vegas.
Other recent developments in the business include the launch of same-day delivery in its hometown of London. “It’s a market where people buy sneakers and wait weeks for them to arrive,” Rashid said. “Now, if you live on the M25 [the motorway ring road that encircles London], they can stand up in three or four hours. “
The company is also focusing on sustainability. As part of its commitment to a circular economy, it launched a popular marketplace in November to sell second-hand goods and has invested in recycling technology that will allow it to recycle 80% of its waste. Externally, the company is focused on removing plastic waste from the oceans and has pledged to buy a kilogram of waste for every customer.
Moshe Rashid believes his sneaker business can command a billion-dollar valuation
Looking ahead, Rashid sees great potential to grow the business further. 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. Sales to sports stars, celebrity endorsements and marketing partnerships can all drive growth.
But Rashid also sees growing demand for premium products in market segments that have traditionally been less vulnerable to economic setbacks. “The limited-edition sneaker market has reached the intersection of fashion or cultural trends and merchandise as more buyers view purchases as an investment asset class,” he said. “We noticed customers were creating collections, making up to five purchases per month, with a typical value of $430 per transaction.”
Edit LDN’s seed round will help businesses make headway in all of these areas, with funds earmarked for investments in technology, recruiting, and marketing. Rashid hopes to double his income again in the coming year.
The seed round was led by Regah Ventures, an early investor in companies including Uber, Coinbase and Instacart, as well as a number of angel investors with ties to the financial services industry. Investors also include sports figures such as New York Giants captain Xavier McKinney, basketball superstar PJ Tucker and Premier League soccer player Jesse Lingard.
Mark Hager, CEO of Regah Ventures, believes Rashid’s ambition to build a billion-dollar business is entirely realistic. “We support The Edit LDN as the most disruptive and innovative global marketplace for limited-edition sneakers, streetwear and collectibles,” he said. “With the unique market positioning, celebrity endorsements and the strong brand they’ve built in a short period of time, it’s a very exciting business.”
