German start-up Snocks, recognized for its high-quality socks and underwear, has recently sold a minority stake to private equity firm Cathay Capital, in a deal estimated to be worth tens of millions of euros. This strategic investment from Cathay Capital will provide Snocks with the necessary resources to accelerate its international expansion plans. Despite the injection of capital, Snocks founders Johannes Kliesch and Felix Bauer will still remain the majority stakeholders and maintain control over the company’s operations.

The success story of Snocks garnered attention when it reported a record revenue of €32 million in fiscal 2021. With the backing of Cathay Capital, the brand aims to build upon this achievement by further establishing its presence in France and establishing an office in Paris. Kliesch confidently stated that they anticipate generating approximately €1 million in revenue from the French market alone. Expanding into France will serve as a gateway for Snocks to penetrate other western European markets, including Spain, Italy, and Scandinavia.

As an online-only business, Snocks recognizes the importance of investing in building a strong brand image, both through digital channels and in-person events. Kliesch firmly believes that there is still untapped potential within their target market and internationally. To capitalize on this opportunity, Snocks plans to allocate substantial funds towards expanding their inventory to ensure efficient and prompt product delivery. Additionally, the founders intend to utilize a portion of the investment to broaden their product range through strategic acquisitions or outright purchases of stakes in other companies.

The decision to partner with Cathay Capital was motivated by the firm’s extensive global presence and expertise. Snocks highly values Cathay Capital’s experience and its commitment to nurturing a global ecosystem. With a strong foothold in Europe, Asia, and North America, Cathay Capital is an ideal partner for Snocks. Specifically, Snocks plans to leverage Cathay Capital’s sourcing know-how in Asia, where the majority of Snocks production sites are located.

Cathay Capital is a renowned investment firm with a global footprint, operating across various sectors, including consumer goods, corporate transformation, and healthcare. The firm has a proven track record of supporting other successful consumer brands, such as Juliette Has a Gun and Moose Knuckles. Cathay Capital’s German team has been actively investing in diverse industries since 2015, making Snocks their first investment in a digital native brand in Germany.

Fabien Wesse, managing partner at Cathay Capital, expressed his enthusiasm for the opportunity to help Snocks expand globally and continue its impressive growth trajectory. Wesse commended Snocks for its distinctive business model and strong team, which has demonstrated expertise in online marketing and sales. He believes that Cathay Capital’s experience in deploying consumer brands internationally will make them a valuable partner for Snocks, contributing to their ongoing success.

Overall, the partnership between Snocks and Cathay Capital is expected to propel the German start-up to new heights and solidify its position as a prominent player in the socks and underwear market. With ambitious plans for international expansion and continued investment in their brand and product range, Snocks is poised to become a household name in the fashion industry.

For more information on Snocks and their products, visit their official website: Snocks Official Website.

To learn more about Cathay Capital and their investment portfolio, visit their website: Cathay Capital Official Website.