29th October 2019
Specialist eCommerce platform Online Poundshop Ltd 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.
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