ECommerce fulfilment company Selazar has announced a £20 million growth investment to enhance its UK network and fund global expansion.
The new capital injection is the largest ever tech investment into a Northern Ireland-based company and will deliver substantial gains for existing local investors
The company says the investment will significantly increase the company's valuation, enhance its UK network and fund the company’s expansion into Europe, the US, and Latin America.
Existing investors including local business angels, Foresight Group and Co-Fund NI, managed by local venture capital firm Clarendon Fund Managers, will realise gains of up to 5.2x their initial investment as they sell their shares as part of this deal. Co-Fund NI is part of Invest Northern Ireland’s Access to Finance portfolio.
The new investment will initially see Selazar open new warehouses in Ireland and the Netherlands, followed by four additional warehouses in the United States and one each in Mexico and Colombia.
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Selazar intends to quadruple its global headcount in the next year to support the rapid growth and will also offer new financial services for its customers.
Selazar was founded in Belfast in 2018 and has a team of more than 30 across its existing offices in London and Castle Donington. The company has developed an innovative proprietary eCommerce fulfilment platform and primarily services medium to enterprise-sized retailers throughout the UK.
Invest NI has offered the company £93,000 of R&D support towards the development of its eCommerce platform. The company has also received funding from the COVID-19 Equity Investment Fund (CEIF), part of Invest NI’s Access to Finance portfolio.
Speaking about the investment, Jack Williams, CEO of Selazar, said: “Not only will it fund the opening of eight new warehouses, but it will also allow us to develop further our proprietary fulfilment technology and support customers trading in the UK, US, Europe, and Latin America. Above all, this investment separates Selazar from other third-party logistics (3PL) providers. We will be a one-stop eCommerce fulfilment shop for retailers wanting to set up business in the US, Europe, and beyond.”
Chris Trotter, Investment Manager at Clarendon Fund Managers, also added: "Selazar has expanded rapidly over the past 18 months following exceptional demand from their eCommerce customers. We are proud to have supported the Selazar team and are delighted that from their Belfast base they will now be operating a global fulfilment network. We are also pleased this investment has provided excellent financial returns to Co-Fund NI and a group local angel investors."
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As a result of Selazar’s expansion to become an international eCommerce fulfilment company, customers will be able to transfer stock between international warehouses. This has the potential to ease some of the pain that has resulted from Brexit, as it will simplify processes and reduce costs, which is currently a friction point for larger businesses.
The global investment group financing Selazar will acquire all shares from existing investors. It is committed to growing sustainable and socially equitable businesses that have a tangible impact on the lives of its partners, employees, and communities. The weight of this new sole investor will sustain Selazar’s global growth plans well into the future.
Co-Fund NI is part of Invest NI’s Access to Finance portfolio. Co-Fund NI and Invest NI’s R&D support is part financed by the European Regional Development Fund under the EU Investment for Growth and Jobs Programme 2014–2020.
CEIF is a £5 million fund that was launched by Invest NI as part of its Access to Finance portfolio. It has helped qualifying early stage high-growth potential businesses in Northern Ireland access financing to progress their business plans and prepare for recovery from the effects of the pandemic and future growth.
Source: Written from press release.
