Online Retail Training
First Investment: March 2015
RedSeed offers an end-to-end solution for large retailers who want to increase sales through their sales team. The engagement of the trainee and the coach in a customised feedback loop positively changes behaviour and sales culture. Producing a video-based training suite that is focused on behaviour change and lifting sales, gives its customers average same store growth in sales of 12%.
RedSeed’s online centric approach reduces the amount of administration and improves consistency of training inputs, yet puts the coaches and the company in control. With over 50,000 active trainees, RedSeed has a significant footprint in the New Zealand retail business market, with clients including The Warehouse and Fletcher Building.
RedSeed have long-term relationships with their clients, with an estimated 63% share of the local market. With the operational side of the business able to scale relatively easily, the main challenge is to expand their international sales capacity. Punakaiki Fund’s investment will be used primarily to help RedSeed enter the Australian and US markets, where there is significant latent demand from retailers of all sizes for RedSeed’s services.
RedSeed’s last investment event was the buyout by the company of an early investor’s shares in tranches in late 2016 and 2017, with one further tranche planned. These are all at a discount to fair value, and LWCM was active in negotiating this arrangement.
Lance Wiggs in active in the governance of RedSeed including providing advice on local and international strategy and growth, pricing, balance sheet management and executive recruitment negotiations.
The primary founder, Anya Anderson, owns around half of the company, and along with co-founder Glen Duffield, still leads the business today.
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