The online fashion marketplace, which has circular economy principles at its heart, was the first listing to benefit from Nasdaq’s green designation. Shanny Basar reports.
Sophie-Cécile Wickmann, chief customer officer (CCO), had the idea for Rebelle, a European online marketplace for luxury second-hand fashion items, while trying to solve a problem. She wanted to sell clothes and accessories she had accumulated from former jobs and while studying for an MBA. She and co-founder Max Schönemann launched Rebelle in Hamburg in 2013. In February this year, the firm made history as Nasdaq’s first green initial public offering (IPO).
Rebelle.com has more than 200,000 product listings, including high-end brands, such as Louis Vuitton, Chanel and Prada. The company physically verifies the authenticity and quality of products sold, assumes all payment processes and ships to buyers.
Transforming an industry
When Rebelle was founded, concepts such as the circular economy and concerns about the environmental impact of the fashion industry were less pronounced. However, these are issues Ms Wickmann felt strongly about from the outset. “The company was founded with the mission to transform the way people consume fashion, away from the fast-fashion idea, and much more in the direction of keeping products longer, making them reusable and looking at the resale value,” she says.
When we talked with Nasdaq about the green designation, it was really clear this could suit our sustainable and circular business model
A Nordic shareholder raised the topic of an IPO in 2021 and the company started looking into stock markets such as Copenhagen and Stockholm, which Ms Wickmann described as having a completely different ecosystem from Germany. In particular, Nasdaq had launched its green designations — Nasdaq Green Equity Designation and Nasdaq Green Equity Transition Designation — in June 2021 to differentiate businesses with a clear focus on sustainable practices.
These are available to new and existing equity issuers on Nasdaq Main Markets and First North Growth Market in Sweden, Finland and Denmark, with a strong focus on sustainability. For a firm to be eligible, more than half of its turnover must be derived from ‘green’ business activities, less than 5% from fossil fuel activities and at least half of investments must be allocated to activities that deliver clear environmental benefits. Nasdaq says Cicero Green, its approved independent assessor, considered that Rebelle supports the low-carbon future by extending the lifespan of items, resulting in avoided waste, emissions and environmental pollution from the production of new items.
“When we talked with Nasdaq about the green designation, it was really clear this could suit our sustainable and circular business model,” Ms Wickmann explains. “We started to pursue this road and worked closely with Cicero Green.”
Ms Wickmann notes that throughout the process, her company learned much about sustainability and where it could improve, especially as the firm undergoes a review every year. “We hope that the green designation will help us attract the right investors for the company who have a long-term focus and like a business with a strong sustainability focus,” she adds.
On February 25, 2022, Rebelle’s shares began trading under the ticker BELLE, on the Nasdaq Stockholm First North Growth Market. It raised approximately SKr200m ($19.5m) in an offering led by Vator Securities, a Swedish corporate finance firm specialising in growth companies, as sole global coordinator and sole bookrunner. Gernandt & Danielsson Advokatbyrå was legal advisor to Rebelle on Swedish law and Noerr Partnerschaftsgesellschaft was legal advisor on German law. Shares were issued at SKr28 each, valuing Rebelle at approximately SKr626m.
Prior to the offering, a group of qualified investors, including Swedbank Robur Ny Teknik, Skandia Fonder and several existing shareholders, board members and senior executives, had committed to subscribe to 90% of the shares, subject to certain conditions, at the same price as other investors. German venture capitalist investor High-Tech Gründerfonds (HTGF) had invested in Rebelle shortly after the firm was founded. Markus Kressmann, partner at HTGF, said in a statement: “Rebelle impressed the team at HTGF right from the start, with its remarkable innovative spirit in the field of sustainability and the immensely high level of digitalisation in its business model.”
Organic growth
Ms Wickmann says the funds raised will be used first for organic growth and then for potential mergers and acquisitions, as the company is excited about pursuing several targets. “We are in the nice position of being able to look at smaller competitors, but also other companies who could be a nice addition to our business model,” she says.
She also hopes to encourage other female entrepreneurs, as she thinks the start-up scene needs more diverse representation.
“I would really like to encourage every female who thinks she has an idea that it is worthwhile expending time, energy and money to convince others to join her,” she says. “She should not be stopped by the idea that she needs to concentrate on a family, unless that is what she really wants.”
Ms Wickmann is also optimistic that the fashion industry is becoming more sustainable, as fast-fashion players are increasing reporting about their environmental impact and consumer awareness of sustainability is growing. She adds: “The largest problem is that we have to train the consumer so their mindset changes in the direction of not needing so much stuff and then, hopefully, looking for higher quality products that last longer. The biggest impact will always come from the products that you don’t buy.”
