Our portfolio company Modanisa recently announced a new $5.5M funding round. The round in which we also participated was led by Aiman Al-Atiqi of STC Ventures, the venture capital arm of Saudi Arabia’s largest telecom operator STC. This is STC Ventures’ first investment in Turkey and we look forward to the opportunity to continue to partner with them in the future.
Modanisa is an online fashion retailer serving women who dress according to the principles of Islam. This is a market of over 400 million women who spend close to $100 billion on clothing each year. Surprisingly, it’s also a deeply underserved market. Founded in mid-2011 by serial entrepreneur Kerim Ture, internet entrepreneur Sami Guzel, and retail executive Lale Tuzun, Modanisa has been operating for less than 4 years. However, it is already the largest online platform in the world dedicated exclusively to Muslim female fashion.
The company’s Turkish origins give it a unique competitive advantage in the sourcing of high quality textiles for its third party and private label brands. This translates into well-designed, fashionable clothing manufactured at affordable prices for end consumers.
Despite having no physical international presence so far, Modanisa already ships over 35% of its products to customers outside of Turkey. This statistic is unmatched by even the most successful internet retailers in Turkey. This is why it makes a lot of sense to partner with STC Ventures as Modanisa looks to grow its international sales. Over 150 million of the 400 million female Muslim population that Modanisa targets lives in the Middle East and STC Ventures provides direct access to these countries.
We’re fortunate to partner with STC Ventures, and thankful to Jan Fomferra and his team at investment bank IEG, and Recep Bildik and his team at the Borsa Istanbul (Istanbul Stock Exchange) Private Market platform for bringing us together with the STC Ventures team.
The Borsa Istanbul Private Market platform is a unique effort that matches Turkish startups looking for growth capital with local and international investors. We appreciate the strong support which Borsa Istanbul is showing local startups and we’re confident that Modanisa is just the first of many successful transactions which will be facilitated by the platform.