Great Hill Partners acquires Notonthehighstreet
Notonthehighstreet, a UK online marketplace for lifestyle products and 'thoughtful gifts', has been acquired by growth equity firm Great Hill Partners.
Great Hill Partners will become the majority shareholder in the business, with existing investors Burda Principal Investments and Industry Ventures also remaining as shareholders.
The news comes following a year of unprecedented growth for notonthehighstreet, in which revenues rose more than 50 per cent. During this time, the company, which supports thousands of the UK’s best independent artisans, designers and boutiques, grew its customer base by almost 1 million and added four times as many hand-picked small business Partners to the site than the prior year.
The backing and expertise of this investor base will help notonthehighstreet to further advance its growth; expanding its reach in the UK’s small business community, and developing and diversifying the range of products offered through the marketplace in order to meet growing customer demand for categories such as homeware, gardenware, and food & drink (+100 per cent combined sales YOY).
The transaction is also a catalyst to expedite the company’s tech and product roadmap for both sides of its business, evolving the experience of its small business Partners, and helping customers find the perfect product from the now expanded range through the evolution of onsite and in-app discovery tools and algorithms.
Claire Davenport, CEO of notonthehighstreet, says: “notonthehighstreet has been the online home of the UK’s best creative small businesses since 2006, and business has boomed for our marketplace in the past 12 months. With more people shopping online and choosing to support small businesses than ever before, notonthehighstreet has become a go-to platform for people across the UK who are seeking unique ways to improve their home environment, discover new ways to spend their time and find thoughtful ways to stay connected with loved ones.
“We’re incredibly grateful to our founders and past shareholders for all they’ve done for the business to date, and we are delighted to work with digital growth experts Great Hill Partners, Burda and Industry for the next exciting stage of our growth. Each brings considerable expertise that will help us to build on the success we’ve seen so far.”
Great Hill has actively invested across the digital commerce landscape for nearly twenty years, backing innovative online marketplaces and leading brands including Momondo Group, Wayfair, and The RealReal.
“Since its founding, notonthehighstreet has become the leading UK destination for unique products and gifts, with a stellar group of small business Partners and an extremely loyal customer base,” says Peter Garran, Partner at Great Hill Partners. “We are excited to work with Claire and notonthehighstreet’s talented team, leveraging Great Hill’s experience in helping scale leading digital marketplace companies.”
Michael Kumin, Managing Partner, adds: “While e-commerce adoption has accelerated over the last twelve months, notonthehighstreet’s focus on curating products from the UK’s best small businesses has enabled the company to stand out. We are excited to help the company build upon its current momentum and expand the NOTHS online marketplace to a growing number of UK consumers and small business Partners.”
“We are excited to continue to back Claire Davenport and her team in shaping the future of notonthehighstreet and reimagining online retail. Having access to a market place like notonthehighstreet is the backbone for thousands of small businesses in the UK and at the same time a great shopping experience for millions of customers. We very much look forward to partnering with Great Hill”, said Christian Teichmann, Managing Director of Burda Principal Investments.
notonthehighstreet was founded in 2006 by Holly Tucker MBE and Sophie Cornish MBE, and was previously backed by Index Ventures, Venrex and Eight Roads Ventures, as well as Burda Principal Investments and Industry Ventures.
Evercore served as the exclusive financial advisor to notonthehighstreet while Arma Partners served as the exclusive financial advisor to Great Hill Partners.