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News

UK online spend is set to reach £75bn by 2024, and clothing and footwear will remain the largest product sector, a new study has predicted.

 

According to GlobalData’s UK Online Retailing 2019-2024 report, online spending will surge by 30.4% over the next few years, as shoppers continue to shift away from physical stores.



This means that almost one fifth of UK retail spend will happen online by 2024. Fashion retailers will continue to lead the way online, offering consumers better shopping experiences and more convenience than ever before. 

 

Clothing and footwear will continue to dominate the online market, but the biggest driver of growth will be the food and grocery market as the number of people who have purchased food online increases. The sector is predicted to rise by £5bn to reach £16.2bn, making it the second largest product category behind clothing and footwear. An e-tail survey of 10,000 UK online shoppers found that just one third of consumers have purchased food and grocery online in the past 12 months, compared to almost two thirds that shopped with online fashion retailers.

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Visa is buying Plaid, an American financial services company, in a deal worth $5.3 billion — roughly double the startup’s last private valuation.

 

Plaid’s API software lets startups connect to users’ bank accounts and works with Venmo, mobile investing app Robinhood and cryptocurrency exchanges Coinbase and Gemini.

 

Plaid says 25% of people in the United States with bank accounts have connected to the fintech company through an app. Visa and rival Mastercard were early investors in the start-up, along with the venture arms of Goldman Sachs, Citi and American Express.

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Liberis, the fintech on a mission to reshape small business finance for good, has successfully closed a £32 million funding round in its largest equity capital fundraise to date.

 

This investment represents the company’s first institutional equity fundraise and was led by FTV Capital – a growth equity firm with a successful track record of supporting high-growth financial services and technology companies.

 

Liberis is backed by Blenheim Chalcot, the UK’s leading digital venture builder, who welcome FTV as co-investors in Liberis. This investment brings Liberis’ total debt and equity funding to over £150 million.

 

Since its inception, Liberis has provided over 15,000 small businesses with more than £450 million in funding of which the majority through its innovative Funding-as-a-Service platform with integrated partners.

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medino, a business on a mission to make pharmacy shopping more convenient, has announced that it has closed a £440k funding round.

 

The ecommerce platform offers over 3000 health, well-being and pharmacy products and has quickly gained traction with a thriving customer base in the UK, surpassing 50,000 orders in December. Their focus is on facilitating the purchase of items that might be overpriced or out of stock at a local pharmacy or unavailable due to limited opening hours.

 

The recent funding round, comprised of a number of angel investors with experience in digital and e-commerce as well as leading investors in some of Europe’s fastest-growing online pharmacy’s, will be used to further fuel medino's growth.

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ClassPass, the global fitness and wellness marketplace, has announced the close of a $285 million Series E investment.

 

The round, which was led by L Catterton and Apax Digital, with additional participation by existing investor Temasek, follows the successful expansion by ClassPass into 28 countries and the signing of more than 1,000 leading employers into its corporate wellness program.

 

Founded in 2013, ClassPass pioneered the modern-day fitness and wellness marketplace. Today, ClassPass has over 650 employees across five continents and partners with more than 30,000 boutique studios, gyms and wellness providers, offering members access to the largest global network of wellness-inspired experiences.

 

The investment will enable ClassPass to continue rapidly scaling its proprietary reservation and booking technology. Its superior model and technology have made it the marketplace of choice for providers who leverage ClassPass’ advanced machine learning capabilities to maximise their revenue and optimise utilisation.

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Dominic Chappell, the former owner of BHS, has been ordered to pay £9.5 million into the retailer’s pension schemes following a decision after three years of legal battles.

 

Chappell had acquired BHS for only £1 through his Retail Acquisitions firm from Philip Green in 2015, 13 months before it crashed, leaving 11,000 people without jobs and a pensions deficit of £571m. Green had agreed to a £363m cash settlement with the Pensions Regulator in 2018.

 

In November, Chappell was banned from holding any company directorships for ten years by the Insolvency Service. Later this year, he will face a separate trial for tax fraud, which he denies.

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Capri Holdings Limited, the luxury fashion conglomerate, has joined the host of clothing brands offering support to Australia's bushfire relief efforts.

 

The group - which includes Versace, Jimmy Choo and Michael Kors - has pledged a donation of AUD $100,000 to the Australian Red Cross, to help support the relief and rebuilding efforts for individuals and communities devastated by the fires.

 

Earlier this month, the luxury conglomerate Kering - whose brands include Gucci, Saint Laurent and Balenciaga - announced plans to donate of AUD $1 million to local Australian organizations tackling the crisis. PVH Corp, the parent brand of companies including Calvin Klein and Tommy Hilfiger, has also pledged a AUD $100,000 donation to the Australian Red Cross Disaster and Recovery Fund, while cult yoga label Lululemon donated AUD $50,000.

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Cubic Transportation Systems—the business division of Cubic Corporation leading ticketing, fare collection and management solutions for public transportation systems—and Moovit—the leading Mobility-as-a-Service (MaaS) solutions company and provider of the most popular urban mobility application—have signed a definitive agreement to co-develop next-generation mobile solutions for public transit agencies.

 

Cubic has been supplying Transport for London with the contactless technologies behind Oyster Card since its introduction in 2003.

 

Israel-headquartered Moovit has 680 million users in 3,000 cities across the world. The app—and associated desktop version—enables users to plan transit journeys, and can provide real-time information as well as notifications at stops.

 

The new partnership will enable Cubic to incorporate Moovit’s MaaS functionality to offer multimodal trip planning, mobile payment and ticketing capabilities.

 

“Riders will be able to plan journeys and pay for them too, from the ease of a single platform,” according to Moovit co-founder and CEO Nir Erez.

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Amazon increased its ecommerce market share in the UK from 28.8% in 2018 to 30.1% in 2019, according to the latest report from global ecommerce insights firm Edge by Ascential.

 

The report reveals that Amazon dominates UK ecommerce (30.1%), accounting for $30bn in sales in 2019. The next biggest player is eBay, which takes a 9.8% share of the online market, followed by Sainsbury’s (4.6%), Tesco (4.5%), Walmart/Asda (3.9%), and John Lewis (3.6%).

 

The UK is the world’s third largest ecommerce market behind China and the US, accounting for $101bn in 2019. Moreover, Edge by Ascential analysts predict that ecommerce’s share of chain retail will continue to rapidly increase in the UK, expanding from 21% in 2019 to 26% in 2024.

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Insurance disruptor Cuvva that began as an app offering pay-as-you-drive motor insurance has raised £15 million ($19 million) of venture capital backing to target the long-term motor insurance business.

 

RTP Global, Breega and Digital Horizon have joined seed investors LocalGlobe, Techstars Ventures, Tekton and Seedcamp to invest in the app-based insurance platform, which recently announced the appointment of the Lloyd’s of London chairman as its chair.

 

Angel investors from the insurance sector, including Dominic Burke, the CEO of Jardine Lloyd Thompson and Faisal Galaria, the former chief strategy and investments officer of GoCompare, have also put in capital.

 

Cuvva’s Series A funding comes as the company prepares to launch a pay-monthly insurance product for the first time, a key step in its ambition to provide one gateway app to serve all consumer insurance needs.

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