Case Studies

Back to Case Studies

Online Poundshop

Partner:Midven

Region:Black Country

Location:Wednesbury

  • The significant investment will enable Online Poundshop Ltd to upgrade the warehouse systems, and will create a range of new positions across the business including marketing and distribution roles.

Specialist eCommerce platform Online Poundshop Ltd (www.poundshop.com) has secured considerable investment from venture capital firm Midven, allowing the company to upgrade current warehouse systems, and create a range of new positions across the business – including marketing and distribution roles. The investment has come from the £35m West Midlands equity portion of the Midlands Engine Investment Fund (MEIF).

Based in Wednesbury and founded in 2014, Online Poundshop offers a wide variety of top brands and essential products at a discounted price direct to customers across the UK. The company has seen rapid growth since its inception largely due to a previous investment from Foresight VCT plc and strong entrepreneurial expertise within the management team. Online Poundshop Ltd was founded by Steven Smith, the pioneer of Poundland, and is led by Chris Maddox, former CEO of The Works.

The rise of eCommerce is prevalent across all spheres of business and Online Poundshop Ltd is at the forefront of the eCommerce revolution within the general discount sector. The investment in systems is key to scaling the business in line with rapidly increasing demand whilst delivering significant operational efficiencies for the business.

Chris Maddox, CEO of Online Poundshop Ltd said:

“We are delighted as a team to have received the additional backing from Midven, Their substantial investment will support the continued development of our systems including new warehouse and operational systems as well as the creation of a brand-new marketing function, underpining the increasing  demands we are already experiencing  but more importantly, providing for a solid operational platform to support our significant future growth plans . Whilst enabling us to stay one step ahead of our competitors this investment means that we remain being the UK’s fastest growing and largest online pound shop”.

Roger Wood, Director at Midven, said:

“Online Poundshop Ltd has grown rapidly over the last three years, demonstrating 50% year on year growth. The company is run by an extremely talented management team, all with exceptional track records within the sector. These two things combined made for a compelling case for MEIF to provide funding, to support investment into key systems that will enable the business to scale its eCommerce platform to the next level”.

Grant Peggie, Director at the British Business Bank said:

“This deal between the MEIF West Midlands Equity Fund and Online Poundshop is a great example of how the Fund is supporting companies to drive forward growth, development and create new job opportunities across the Midlands. I would encourage other growing companies to consider MEIF as a potential funding source.” 

Ninder Johal, Board Member Black Country LEP said: 

“This investment is great news for Black Country business and its fantastic to see companies such as Online Poundshop Ltd continue its growth trajectory with Midlands Engine investment. Investment such as this ensures and increases confidence in continued economic growth and productivity across the Black Country.”

The MEIF project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

Follow @midsenginv


Worcestershire-based @RapidRetail has secured £98k from @B_C_R_S through the #MEIF in conjunction with #CBILS.

The finance boost will help the firm, which supplies modular retail units, to fulfil orders and protect jobs.

Read more in @insiderwestmids: https://t.co/9ANR7Ho2Kn https://t.co/DdPkIEmVqg
MidsEngInv photo

#MEIF finance can be used to support buying machinery, hiring staff or expanding into new markets. A recent Early Assessment Report found that the Fund’s investment was enabling more businesses to export abroad.

Read the full report here: https://t.co/husSGZCYQu https://t.co/m3PNR6Jf0K
MidsEngInv photo

We have launched a #MEIF LinkedIn. Follow the page for the latest investment news, Fund information and support on accessing finance: https://t.co/mhwkGSoAcr https://t.co/JOSv8rnRAQ MidsEngInv photo

The @BritishBBank’s Coronavirus Business Interruption Loan Scheme is available to SMEs disrupted by COVID-19. #MEIF fund managers @B_C_R_S, @FinanceSE and @1st_Enterprise join partners providing up to £5m to UK SMEs.

Find out more about #CBILS: https://t.co/2xEu9sVTmd https://t.co/7PDOSn4uUl
MidsEngInv photo

#MEIF Proof-of-Concept equity funding can help you get an idea off the ground and realise your business dream. Available via our fund manager @Mercia_PLC, find out more about this funding type here: https://t.co/mQ2yg2P91L https://t.co/zO1eTqSEvc MidsEngInv photo

Find Out More

If you would like to meet with one of MEIF's appointed Fund Managers to talk in more detail please go to Funds Available to find the Fund Managers operating in your area

Small Business Loans

£25k – £150k

Learn More
debt finance

Debt Finance

£100k – £1.5m

Learn More
equity finance

Equity Finance

£50k – £2m

Learn More

Proof of Concept

Up to £750,000

Learn More