Islamic Lifestyle 

European Bank of Reconstruction and Development invests in modest fashion portal

| 13 March, 2019

The European Bank of Reconstruction and Development (EBRD) becomes the latest investor in leading modest fashion portal It is the second major global investment in the e-tailer in as many months, following Goldman Sachs and Wamda Capital’s announcement of a minority stake in January.

The EBRD is a major investor in Turkey – its 7 billion euros Turkey portfolio is the largest among the 38 economies where the bank is active.

Since 2009, the EBRD, which supports “the transition to open, market economies, whilst fostering sustainable and inclusive growth”, has invested over 11 billion euros in various sectors of the Turkish economy. Almost all have been investments in the private sector.

Modanisa CEO Kerim Türe said, “This new round of funding demonstrates confidence in Modanisa’s vision, management and performance, and the resounding strength of the modest sector in general. The investment will underpin our plans to become the largest modest fashion platform in the world.”

He added, “Having the EBRD as our newest shareholder is also great news for creating jobs and entrepreneurship opportunities for women and small businesses, which form the backbone of our ecosystem. Our primary purpose is to enrich women’s lives and we are committed to empowering women.

Three quarters of the 60-odd fashion labels and 600 manufacturers and suppliers Modanisa works with are run by female entrepreneurs. Our success on the global stage is helping to transform their lives too by giving them access to an ever-larger shop front to the world.”

Last year, exports accounted for 80% of Modanisa’s business. The e-commerce site’s flourishing international trade is helping to sustain and develop many smaller, mainly female-owned businesses, which not only have instant access to a global customer base, but also benefit from the firm’s expanding logistics infrastructure and marketing capability.

Headquartered in Istanbul, the online portal stocks 70,000 items sold to customers in 130 countries. In the past 12 months, received in excess of 150 million visitors, as demand soars for stylish and affordable ready-to-wear modest fashion.

The e-tailer’s commercial success is also attracting wider recognition. Modanisa is one of the six firms shortlisted this year for the FT/ArcelorMittal Boldness in Business Entrepreneurship Award. The winner will be announced on Thursday, 14 March.

In 2017, the firm’s fashion creativity was recognised with the Islamic Arts trophy at the Islamic Economy Awards. The following year, Modanisa won the E-commerce and Digital Experience Award at the 2018 International Business Excellence Awards in Dubai.