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Oxford Capital join $8 million investment round in interiors marketplace eporta

  • eporta connects interior designers, property developers, and offices directly with the
    world’s best furniture manufacturers, saving them time and money in the process
  • The startup is one of just a handful of UK companies to secure series A investment from a US venture capital firm in the last year
  • eporta was founded three years ago by Oxford graduate Aneeqa Khan after she struggled to find  furniture for her new home in Brixton, London.

London, 10 April, 2018 — eporta, a London-based B2B interior marketplace startup, has raised $8 million in a series A funding round led by US investor Canvas Ventures as it looks transform the $700 billion global design and furniture industry.

The latest investment round also includes venture capitalists LocalGlobe, Oxford Capital, Talis
Capital, Samos Ventures, alongside other existing angel investors Guy Hands, Ed Wray (co-founder, Betfair), Rohan Blacker (founder, sofa.com ), Simon Kain (co-founder of Zoopla) and Will Cooper (founder, Achica.com).

Founded in 2015, eporta allows interior designers, architects, property developers, offices and other businesses to find and purchase furniture pieces directly from manufacturers around the world with its online platform. The Hilton Hotel Group, Accenture, Ted Baker, and Charlotte Tilbury are just some of the companies that have used the platform to kit out their spaces with premium lights, chairs, tables, and other furniture pieces.

eporta plans to use the new funding to more than double its team of 28 in Clerkenwell and set up its first office outside the UK, likely at some point within the next year. The exact location for eporta’s second office is yet to be determined. eporta also plans to launch new product categories including fabrics, bathrooms, and surfaces.

eporta was founded by Manchester born Aneeqa Khan, who studied PPE at Oxford before going on to work in private equity investment. She then led strategy at property marketplace Zoopla and oversaw its £919 million IPO in June 2014.

“During my time at Zoopla I bought a flat in Brixton and was basically struggling to find furniture for it,” said Khan. “I realised that the reason I was finding it so difficult wasn’t because there aren’t great pieces out there. It’s actually because it’s really hard for people to find those great pieces or for the people who make the pieces to find trade buyers. So I decided to solve that problem.”

Companies using eporta get a greater selection of high-quality furniture than anywhere else in the world.

There are currently over 1,000 sellers in 55 countries and over 10,000 buyers in 85 countries using eporta.

Companies that purchase items on eporta can expect to save up to 50% off retail pricing. eporta’s revenue model enables suppliers to pay a low commission to utilise the platform. The service is free for buyers to sign up to, with best pricing guaranteed. “Our manufacturer base is now the largest global database of manufacturers online for trade,” said Khan.

“Our selection is just huge, for want of a better word. If you are someone who has a project — it could be a commercial project or a residential project — if you’re using eporta you’re going to find the best pieces and you’re going to have more selection than you would do anywhere else in the world.”

While eporta boasts an extensive range of suppliers, the company is still highly selective when it comes to deciding which suppliers are allowed to list their products on its platform, with 90% of applicants being rejected.

Paul Hsiao, Founding Partner at Canvas Ventures, said: “Through our marketplace investments, we’ve seen what it takes to build a category-defining company that brings value to buyers and suppliers alike. We see a lot of similarities in eporta, and we’re thrilled to be backing Aneeqa. We believe eporta will transform the commercial design and furnishing sector in the same way that Houzz has reinvented the consumer home-design market.”

Tom Bradley, Partner at Oxford Capital, said: “We backed eporta initially because of our confidence in Aneeqa, and it’s been rewarding to see that confidence pay off. Aneeqa is one of the smartest entrepreneurs we have worked with, and has grown an impressive team with a strong culture and vision.

The business is now making a significant mark within the commercial and residential interior design sector and we’re excited for what’s to come.”

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Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    1. If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
  2. You are unlikely to be protected if something goes wrong
    1. Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
    2. Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
  3. You won’t get your money back quickly
    1. Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    2. The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
    3. If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.
  4. Don’t put all your eggs in one basket
    1. Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    2. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. https://www.fca.org.uk/investsmart/5-questions-ask-you-invest
  5. The value of your investment can be reduced
    1. The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
    2. These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

 

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.