Touchtech AB (TOUCH), a developer of technologies that bring engaging digital experiences to in-store shoppers, today announced the completion of a directed share issue worth approximately $4.4 million USD to Heartland, the private holding group of Anders Holch Povlsen.
The investment will give Povlsen, the sole owner and CEO of international fashion group Bestseller, a 25 percent stake in the company, which is publicly traded on the Swedish Spotlight Stock Market.
The investment follows a long-standing business relationship between Touchtech and Bestseller brands, which have been leveraging the technology in physical retail locations and wholesale showrooms throughout Europe since 2018.
With the ability to enhance service levels, drive efficiencies, reduce waste and catalyze conversions in both B2B and B2C environments, the technology is considered to be one of Bestseller’s most impactful digitization initiatives.
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With Touchtech’s established, enterprise-caliber product-market fit and proven business value, the investment from Povlsen’s Heartland holding company will help to accelerate further development and commercialization of the technology. In addition to market expansion, a major priority is to build on capabilities that enable greater sustainability by eliminating the need for physical samples and better aligning production and sales. Not only will this reduce the waste that comes from overproduction, it will also lower capital expenditures and increase profitability as stores can purchase less and sell more at optimal prices.
“The injection of new capital combined with a deepened collaboration with Heartland and Bestseller will enable Touchtech to accelerate our international growth plan and drive the digitalization and change within the retail industry,” said Deniz Chaban, CEO of Touchtech. “We could not wish for a better partner to join us on our mission to create the best possible tools for sales and marketing people in wholesale and retail.
“In recent years, Touchtech has been a highly-valued partner for Bestseller. With the teams’ sound understanding of fashion industry dynamics and ability to serve customer needs through digital solutions, strengthening our relationship through a strategic investment was a natural next step,” said Lise Kaae, CEO of Heartland. “We look forward to working closely with the team to support Touchtech’s future and as a driver of digitalization throughout the industry.”
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