The Bottom Line: NewSpring Invests in Bespoke Post
October 28, 2021
NewSpring, a family of private equity strategies, announced today that NewSpring Growth, the Firm’s dedicated growth and expansion strategy, has invested in Bespoke Post to fuel the rapid growth of the business and hone in on their efforts to help customers discover the most unique small brands.
Bespoke Post is a multi-category, direct-to-consumer e-commerce platform with a fast-growing membership base
Bespoke Post delivers thoughtfully curated under-the-radar goods directly to consumers through a monthly membership and e-commerce platform. Products are sourced from local artisans and small businesses, providing customers with access to high-quality and difficult-to-find products. The brand combines its love of finding and building great products with a tech and data-driven approach that delivers one-of-a-kind boxes to its hundreds of thousands of members.
Bespoke Post is focused on introducing members to new, unique products
The New York-based company was founded in 2011 to introduce customers to products from under-the-radar brands, once a month. Since then, it has worked with thousands of small brands, expanded its offering to thousands of products available to purchase each month, and has grown to over 300,000 active members.
“We’re extremely proud of the fact that 90% of the brands we carry are small. They’re fundamental to our ability to fulfill the promise we make to our members about discovering new gear and experiences. We also find small brands share our values in terms of having a deep commitment to authenticity, quality, and craft.”
The company uses data analytics to form close, long-lasting relationships with customers and fuel growth
Bespoke Post seeks to learn all it can about its customers’ tastes and preferences in order to deliver a truly personalized monthly box. In doing so, the company creates deep relationships with its members, which leads to high customer retention and satisfaction. This customer data is also used in product sourcing and vendor selection in order to make better purchasing decisions that drive sales.
The company has focused on profitable growth over the years and has only raised $8 million prior to this round. Last year, the company saw revenue increase by 85%.
“Bespoke Post has focused on capital-efficient growth, led by a data-driven approach to merchandising and customer acquisition. We are excited to partner with the management team and continue to invest in the company’s innovative technology and bring interesting, emerging brands to the market.”
Bespoke Post is directed by an innovative management team focused on driving value for customers
Co-CEOs Steve Szaronos and Rishi Prabhu are supported by a data-driven and process-oriented team that is constantly seeking new ways to elevate the business. The company will use this funding to continue to discover new small brands, launch retail partnerships, and invest in their data science capabilities.
“Over the last two years we’ve increased revenue per member by 35% thanks to a more personalized member experience. This is just the beginning of how we can use our existing insights platform to identify up-and-coming brands, and then get the most relevant products in front of our customers based on their interests.”