SPEAR Capital, an international private equity firm with a focus on Southern Africa, has increased its investment stake in South African online fashion retailer MyRunway.

Formerly called RunwaySale, MyRunway has warehouses in Cape Town and Johannesburg and ships more than 600 000 fashion items a year across South Africa.  

The investment builds on the R100m stake SPEAR Capital took in the company in early 2020 and is a testament to MyRunway’s ongoing growth and innovation over one of the most challenging economic periods in global history.   

“When we formally announced our first investment in MyRunway last year, South Africa was still under one of the world’s harshest lockdowns, with ecommerce activity severely curtailed,” says Bryan Turner, Partner, SPEAR Capital. 

“That obviously meant adapting a lot of the initial plans we’d developed with the MyRunway team. They rose to the challenge and have subsequently grown to the point where they’re no longer just taking on other players in the ecommerce space, but established brick-and-mortar retailers.”

“We’re proud to be a part of that growth story and I’m happy we have the opportunity to back that up by increasing our investment,” he adds. 

Turner credits much of MyRunway’s growth to its management team, who are masters of their craft, and the company’s approach to the fundamentals of ecommerce, which include building its own tech, controlling its logistics, and demonstrating expertise in digital marketing. 

According to MyRunway CEO and co-founder Karl Hammerschmidt, SPEAR Capital’s contribution has allowed them to build on these fundamentals and have helped fuel the company’s growth. 

“As an entrepreneur, you’re not just looking to raise capital when you approach investors,” he says. “You also want to be able to tap into their knowledge, expertise and networks. SPEAR’s experience across Sub-Saharan Africa and Europe has been invaluable on that front and we look forward to building on what has already been a fruitful relationship.”

MyRunway will use the additional investment to continue on its growth path, develop new features across the platform, and to continue bringing high-quality international fashion brands to South African consumers.